Parrot, Inc.purchased a 60% interest in Swallow Company on January 1, 2016, for $204,000.Any excess of cost was attributable to goodwill.
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On January 1, 2019, Swallow purchased 2,400 of its shares held by non-controlling stockholders for $50 per share.Swallow equity balances on various dates were as follows:
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\begin{array}{lrrr}&\text { January } 1, & \text { December 31, } & \text { January 1, } \\&\underline{2016} & \underline{2018} & \underline{2020}\\\text { Capital stock }(\$ 10 \text { par }) & \$ 120,000 & \$ 120,000 & \$ 120,000 \\\text { Paid-in capital in excess of par } & 60,000 & 60,000 & 60,000 \\\text { Retained earnings } & 160,000 & 240,000 & 340,000 \\\text { Treasury stock (at cost) }{ }^{*} & & & (120,000) \\\quad{ }^{(}(2,400 \times \$ 50) & & &\end{array}

Parrot maintains its investment at cost; Swallow recorded the purchase of its shares as treasury stock at cost.
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Required:
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Prepare the necessary determination and distribution of excess schedules and all Figure 8-7 worksheet eliminations and adjustments on the following partial worksheet prepared on December 31, 2020:
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$Parrot, Inc.purchased a 60% interest in Swallow Company on January 1, 2016, for $204,000.Any excess of cost was attributable to goodwill. ? On January 1, 2019, Swallow purchased 2,400 of its shares held by non-controlling stockholders for $50 per share.Swallow equity balances on various dates were as follows: ? ? \begin{array}{lrrr} &\text { January } 1, & \text { December 31, } & \text { January 1, } \\ &\underline{2016} & \underline{2018} & \underline{2020}\\ \text { Capital stock }(\$ 10 \text { par }) & \$ 120,000 & \$ 120,000 & \$ 120,000 \\ \text { Paid-in capital in excess of par } & 60,000 & 60,000 & 60,000 \\ \text { Retained earnings } & 160,000 & 240,000 & 340,000 \\ \text { Treasury stock (at cost) }{ }^{*} & & & (120,000) \\ \quad{ }^{(}(2,400 \times \$ 50) & & & \end{array} Parrot maintains its investment at cost; Swallow recorded the purchase of its shares as treasury stock at cost. ? Required: ? Prepare the necessary determination and distribution of excess schedules and all Figure 8-7 worksheet eliminations and adjustments on the following partial worksheet prepared on December 31, 2020: ? ?$

When a Subsidiary Owns Shares of the Parent, the Subsidiary's

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