On January 1, 2011, Peres Company purchases 80% of the common stock of Soap Company for $308,000. 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 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 attributed to goodwill.
1. Using this information and the information in the following trial balances on December 31, 2012, prepare a value analysis and a determination and distribution of excess schedule:

2. Complete a worksheet for consolidated financial statements for 2012. Include columns for eliminations and adjustments, consolidated income, NCI, controlling retained earnings, and consolidated balance sheet.

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2011 2012 $60,000 $90,000 Net income... Dividends.. 20,000 30,000 Peres Soap Inventory, December 31 Other Current Assets Investment in Soap Company Company Company 100,000 50,000 148,000 180,000 .. . ..388,000 Land 50,000 50,000 350,000 320,000 [100,000) (60,000] Buildings and Equipment.... Accumulated Depreciation.. Goodwill Other Intangibles Current Liabilities Bonds Payable Other Long-Term Liabilities Common Stock-Peres Company Other Paid-n Capital in Excess of Par-Peres Company 20,000 ..(20,000) 40,000 100,000 (200,000) (200,000) 100,000 214,000 Common Stock Soap Company.... Other Paid-In Capital in Excess of Par-Soap Company Retained Earnings-Soap Company.. . . Net Sales.. .. Cost of Goods Sold Operating Expenses Subsidiary Income. . Dividends Declared-Peres Company . Dividends Declared-Soap Company . 50,000] 100,000] (190,000 1520,000) 450,000) 120,000 100,000 72,000) 50,000 30,000 Totals