Salary Company Parson Company Inventory .... Other Current Assets ... Investment in Salary Company Investment in Parson Company Land...... Buildings and Equipment.. Accumulated Depreciation Current Liabilities... Long-Term Liabilities Common Stock-Parson Company ($10 par).. Paid-In Capital in Excess of Par-Parson Company Retained Earnings Parson Company Common Stock- Salary Company ($10 par). PaidIn Capital in Excess of Par-Salary Company. Retained Earnings Salary Company. Net Sales ..... Cost of Goods Sold. Operating Expenses Dividend Income .. Dividends Declared. 170,000 120,000 166,000 450,000 196,000 100,000 80,000 400,000 70,000 280,000 (180,000) (98,000) (250,000) (100,000) (200,000) (350,000) (90,000) (74,000) (100,000) ... (50,000) (140,000) (260,000) (350,000) 200,000 90,000 (640,000) 360,000 160,000 (8,000) 40,000 (2,000) 10,000 Totals .
On January 1, 2015, Parson Company purchases 80% of the common stock of Salary Company for $450,000. On this date, Salary has common stock, other paid-in capital in excess of par, and
Any excess of cost over book value is due to
On January 1, 2016, Salary purchases 1,000 shares (10%) of the common stock of Parson Company from outside investors for $100,000 cash. It is expected that the shares may be resold later. Salary uses the cost method in accounting for the investment.
During the last quarter of 2016, Parson sells merchandise to Salary for $48,000, one-fourth of which is still held by Salary on December 31, 2016. Parson’s usual gross profit on intercompany sales is 40%.
The
Complete the worksheet for consolidated financial statements for the year ended December 31, 2016. Shares of Parson owned by Salary are to be treated as
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