On January 1, 2011, Peres Company purchases 80% of the common stock of Soap Company for $308,000. On this date, Soap has common stock, other paid-in capital in excess of par, and retained earnings of $50,000, $100,000, and $150,000, respectively. Net income and dividends for two years for Soap Company are as follows:

On January 1, 2011, the only undervalued tangible assets of Soap are inventory and the building. Inventory, for which FIFO is used, is worth $10,000 more than cost. The inventory is sold in 2011. The building, which is worth $25,000 more than book value, has a remaining life of 10 years, and straight-line depreciation is used. The remaining excess of cost over book value is attributable to goodwill.
Required
1. Using this information or the information in the following statements for the year ended December 31, 2012, prepare a determination and distribution of excess schedule.
2. Complete the vertical worksheet for consolidated financial statements for 2012.
Figure next page shown below

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2011 2012 Net income Dividends $60,000 20,000 $90,000 30,000 Peres Soap Company Statement Accounts Income Stalement: Net Sales.. Cost of Goods Sold (520,000) 300,000 120,000 72,000) (450,000) 260,000 100,000 Operating Expenses Subsidiary Income . .. Noncontrolling Interest in Income Net Income.. 172,000 90,000) Retained Earnings Statement: Balance, January 1, 2012-Peres Company Balance, January 1, 2012-Soap Company Net Income [from above) Dividends D Dividends Declared Soap Company 1214,000) 190,000] 90,000 .172,000) 50,000 eres Company 30,000 (250,000 Balance, December 31, 2012.___.. 1336,000) Consolidated Balance Shee: Inventory, December 3 1 , 2012. Other Current Assets Investment in Soap Company 100,000 148,000 388,000 50,000 350,000 (100,000) 50,000 180,000 · 50,000 320,000 (60,000) Accumulated Depreciation Goodwill 20,000 ..(120,000) Current Liabilities Bonds Payable 40,000) 100,000] (200,000) 200,000) (100,000) Common Stock-Peres Company. Other Paid-In Capital in Excess of Par-Peres Company. . Common Stock Soap Company Other Paid-In Capital in Excess of Par-Soap Company. . .. Retained Earnings, December 31, 2012 (from above) (50,000 (100,000] 336,000) 1250,000) 0 Totals