(Solution) - Parker Company acquires an 80 interest in Sargent Company for -(2025 Original AI-Free Solution)

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Parker Company acquires an 80% interest in Sargent Company for $300,000 on January 1, 2015, when Sargent Company has the following balance sheet:

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 uses the sophisticated equity method to record the investment in Sargent Company.
The following trial balances of the two companies are prepared on December 31, 2015:
Prepare all the eliminations and adjustments that would be made on the 2015 consolidated worksheet.