Parry Corporation acquired a 100% interest in Sent Company on January 1, 2021, paying $140,000. Financial statement data for the two companies for the year ended December 31, 2021 follow:

Required:
A. What method is being used by Parry to account for its investment in Sent Company? How can you tell?
B. Prepare a workpaper for the preparation of consolidated financial statements on December 31, 2021. Any difference between the book value of equity acquired and the value implied by the purchase price relates to subsidiary land.

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Income Statement Sales Cost of goods sold Other expense Dividend income Retained Earnings Statement Balance, 1/1 Net income Dividends declared Balance Sheet Cash Accounts receivable Inventory Investment in Sent Company Land Accounts payable Common stock Retained earnings Parry $476,000 285,600 45,500 3,500 76,000 148,400 17,500 84,400 76,000 49,500 140,000 4,000 27,000 120,000 206,900 Sent $154,500 121,000 29,500 19,500 4,000 3,500 29,000 56,500 36,500 12,000 14,000 100,000 20,000