Exercise $3($LO $2)$ Equity method, first year, eliminations, statements. Parker Company acquires an $80\%$ interest in Sargent Company for $$300,000$ in cash on January $1,2015,$ when Sargent Company has the following balance sheet:

Assets

Current assets $..............100,000$

Depreciable fixed assets $($net$)..$

$200,000$

Total assets...............

$$300,000$

Liabilities and Equity

Current liabilities............... $50,000\mathrm{.}00$

Common stock $($$$10$ par$).......100,000\mathrm{.}00$

Retained earnings $..............$

$150,000\mathrm{.}00$

Total liabilities and equity $......$

$300,000\mathrm{.}00$

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 Company uses the simple equity method to record its investment in Sargent Company.

The following trial balances of the two companies are prepared on December $31,2015$:

Parker Sargent

Current Assets $..................\mathrm{.}10,000130,000$

Depreciable Fixed Assets $.........\mathrm{.}400,000200,000$

Accumulated Depreciation $.........(106,000)(20,000)$

Investment in Sargent Company $316,000$

Current Liabilities......................................... $(60,000)(40,000)$

Common Stock $($$$10$par$)............(300,000)(100,000)$

Retained Earnings, January$1,2015.....(200,000)(150,000)$

Sales $..............................(150,000)(100,000)$

Expenses $..........................\mathrm{.}110,00075,000$

Subsidiary Income......................................$(20,000)$

Dividends Declared. $5,000$

Totals $00$

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