Problem 6-8 (LO 3) Worksheet, consolidated taxation, simple equity, inventory, fixed asset sale. Refer to the preceding facts for Parsons acquisition of Solar common stock. Parson uses the simple equity method to account for its investment in Solar. During 2016, Solar sells $30,000 worth of merchandise to Parson. As a result of these intercompany sales, Parson holds beginning inventory of $12,000 and ending inventory of $16,000 of merchandise acquired from Solar.

Use the following information for Problems 6-8 and 6-9 On January 1, 2015, Parson Company acquires an 80% interest in Solar Company for 500,000. Solar had the following balance sheet on the date of acquisition: Solar C Balonce January 1, 2015 Assets Liabilities ond Equity Accounts receivable nventory 60,000 Accounts payable $ 70,000 Assels Licbilities and E Land.... Buildings 10,000 120,000 250,000 50,000 Common stock Paid in copital in excess ofpar .120,000 Retained ecrnings.70,000 po,0001 30,000 Goodwill,.. life, are undervalued by $70,000. Equipment, which has a 5-year life, is undervalued by $50,000. Any remaining excess of cost over book value Buildings, which have a is attributable to goodwill, which has a 15-year life for tax purposes only. Use the following information for Problems 6-8 and 6-9 On January 1, 2015, Parson Company acquires an 80% interest in Solar Company for 500,000. Solar had the following balance sheet on the date of acquisition: Solar C Balonce January 1, 2015 Assets Liabilities ond Equity Accounts receivable nventory 60,000 Accounts payable $ 70,000 Assels Licbilities and E Land.... Buildings 10,000 120,000 250,000 50,000 Common stock Paid in copital in excess ofpar .120,000 Retained ecrnings.70,000 po,0001 30,000 Goodwill,.. life, are undervalued by $70,000. Equipment, which has a 5-year life, is undervalued by $50,000. Any remaining excess of cost over book value Buildings, which have a is attributable to goodwill, which has a 15-year life for tax purposes only