Cost method, first year, eliminations, statements. (Note: Read carefully, as this is not the same as Exercise 3 or 5.) 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:
1. If you did not solve Exercise 3 or 5, prepare a determination and distribution of excess schedule for the investment (a value analysis is not needed).
2. Prepare all the eliminations and adjustments that would be made on the 2015 consolidated worksheet.
3. If you did not solve Exercise 3 or 5, prepare the 2015 consolidated income statement and its related income distribution schedules.
4. If you did not solve Exercise 3 or 5, prepare the 2015 statement of retained earnings.
5. If you did not solve Exercise 3 or 5, prepare the 2015 consolidated balance sheet.