Problem 3-2 (LO 2) Simple equity method adjustments, consolidated work- sheet. On January 1, 2015, Paro Company purchases 80% of the common stock of Solar Company for $320,000. Solar has common stock, other paid-in capital in excess of par, and retained earnings of $50,000, $100,000, and $150,000, respectively. Net income and dividends for two years for Solar are as follows: 2016 2015 $60,000 $90,000 20,000 30,000 Nef income Dividends On January 1, 2015, the only undervalued tangible assets of Solar are inventory and the building. Inventory, for which FIFO is used, is worth $10,000 more than cost. The inventory is sold in 2015. The building, which is worth $30,000 more than book value, has a remaining life of 10 years, and straight-line depreciation is used. The remaining excess of cost over book value is attributed to goodwill. 1. Using this information and the information in the following trial balances on December 31, 2016, prepare a value analysis and a determination and distribution of excess schedule: Paro Solar Company Company 100,000 50,000 .136,000 180,000 Inventory, December 31.... Land 50,000 50,000 (100,000) (60,000 oodwill.... 20,000 (120,000) 40,000) (continued)