Parker Company acquires an 80% interest in Sargent Company for $300,000 on January 1, 2015, when Sargent Company has the following balance sheet:

The excess of the price paid over book value is attributable to the fixed assets, which have a fair value of $250,000, and to goodwill. The fixed assets have a 10-year remaining life. Parker uses the sophisticated equity method to record the investment in Sargent Company.
The following trial balances of the two companies are prepared on December 31, 2015:

Prepare all the eliminations and adjustments that would be made on the 2015 consolidated worksheet.

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Assets Liabilities and Equity $100,000 Currentliabilities 50,000 100,000 150,000 $300,000 Current assets Depreciable fixed assets Common stock ($10 par). Retained earnings 200,000 Total assets $300,000 Total liabilities and equity Parker Sargent 10,000 400,000 130,000 200,000 Current Assets Depreciable Fixed Assets Accumulated Depreciation Investment in Sargent Company CuLiabilities Common Stock ($10 par Retained Eamings, January 1, 2015 Sales .. Expenses Subsidiary Income (from Sargent Companyl Dividends Declared 06,000 120,000) 312,000 (60,000] 00 40,000] (300,000 100,000] (200,000) 150,000) 150,000(100,000) 75,000 110,000 (16,000 5,000 Totals