Problem 3-6 (L02) Equity method. 30% interest worksheet, statements. Sandin Company prepares the Following balance sheet on January 1, 2015: Assets liabilities and Equity Current assets .............. $ 50,000 liabilities ..................... $140,000 lend ...................... 75,000 Common stock [$10 per] ......... i 00, 000 Buildings .................. 350,000 Paid-in capital in excess of par . . . . 120,000 Assets Liabilities and Equity Accumulated depreciation- Retained earnings (deficit) . .. . ... . (25,000) buildings . . . . . . .. . . . . . . . (140,000) Total assets. . .... $ 335,000 Total liabilities and equity . . ... . $335,000 On this date, Prescott Company purchases 8,000 shares of Sandin Company's outstanding stock for a total price of $270,000. Also on this date, the buildings are understated by $40,000 and have a 10-year remaining life. Any remaining discrepancy between the price paid and book value is attributed to goodwill. Since the purchase, Prescott Company has used the simple equity method to record the investment and its related income. Prescott Company and Sandin Company prepare the following separate trial balances on December 31, 2016: Prescott Sandin Current Assets . . 180,000 115,000 Land . . . .... 150,000 75,000 Buildings ........ 590,000 350,000 Accumulated Depreciation-Buildings (265,000) (182,000) Investment in Sandin Company . 294,000 Liabilities .. . . .. (175,000) (133,000) Common Stock ($ 10 par) . .. . (200,000) (100,000) Paid-In Capital in Excess of Par . (120,000) Retained Earnings, January 1, 2016. . (503,000) 15,000 Sales (360,000) (120.000)Soles ..................................................... [350,000] {1 20,000] Cost of Goods Sold .......................................... 179,000 50,000 Expenses .................................................. 120,000 45,000 Subsidiary Income ........................................... [20,000] Dividends Declared .......................................... l0,000 5,000 Totals ................................................... 0 0 1. Prepare a value analysis and a determination and distribution of excess schedule For the 4 4 4 4 4 Required investment. 2. Prepare the 2016 consolidated worksheet. Include Columns for the eliminations and adjust- ments, the consolidated income statement, the NCI, the controlling retained earnings, and the consolidated balance sheet. Prepare supporting income distribution schedules. 3. Prepare the 2016 consolidated statements including the income statement, retai ned earnings statement, and d1e balance sheet