Clark Company acquires an 80% interest in Hebron Company common stock for $400,000 cash on January 1, 2011. At that time, Hebron Company has the following balance sheet:

Appraisals indicate that accounts are fairly stated except for the equipment, which has a fair value of $250,000 and a remaining life of five years. Any remaining excess is goodwill. Hebron Company experiences the following changes in retained earnings during 2011 and 2012:

Prepare a determination and distribution of excess schedule for the investment in Hebron Company (a value analysis is not needed).
Prepare journal entries that Clark Company would make on its books to record income earned and/or dividends received on its investment in Hebron Company during 2011 and 2012 under the following methods: simple equity, sophisticated equity, and cost.

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Assets Liabilities and Equity 60,000 Accounts payable 100,000 Common stock($5 par 350,000 Paid-in capital in excess of par (150,000] Retained earnings 360,000 Tol liabilities and equity$360,000 60,000 50,000 100,000 150,000 Current assets .. ..$ Land. Equipment Accumulated depreciation1 Total assets Retained earnings, January 1, 2011.... $150,000 Net income, 2011 Dividends paid in 201 ...60,000 ..1 (10,000) 50,000 $200,000 Balance, December 31, 2011 $ 45,000 Net income, 2012 Dividends paid in 2012. (10,00035,000 $235,000 Balance, December 31,2012.