Sandin Company prepares the following balance sheet on January 1, 2011:

On this date, Prescott Company purchases 8,000 shares of Sandin Company’s outstanding stock for a total price of $270,000. Also on this date, the buildings are understated by $40,000 and have a 10-year remaining life. Any remaining discrepancy between the price paid and book value is attributed to goodwill. Since the purchase, Prescott Company has used the simple equity method to record the investment and its related income.
Prescott Company and Sandin Company prepare the following separate trial balances on December 31, 2012:

Required
1. Prepare a value analysis and a determination and distribution of excess schedule for the investment.
2. Prepare the 2012 consolidated worksheet. Include columns for the eliminations and adjustments, the consolidated income statement, the NCI, the controlling retained earnings, and the consolidated balance sheet. Prepare supporting income distribution schedules.
3. Prepare the 2012 consolidated statements including the income statement, retained earnings statement, and the balance sheet.

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Assets Liabilities and Equity $140,000 100,000 120,000 $50,000 Liabilites Current assets Land Buildings 75,000 Common stock ($10 par 350,000 Paid-in capital in excess of par Assets Liabilities and Equity Accumulated depreciation Retained earnings (defcit) 25,000) buildings Total assets. (140,000) 335,000 Total liabilities and equity$335,000 Buildings 265,000 (182,000) Invesfment in Sandin Com Common Stock ($10 par) Paid-In Capital in Excess of Par Relained Earnings, January 1, 2012. Cost of Goods Sold Subsidiary Income Dividends Declared