Simple equity method adjustments, consolidated worksheet 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:
2011 2012
Net income............ $60,000........ $90,000
Dividends ............. 20,000 ......... 30,000
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 earrings, and consolidated balance sheet

Peres Soop mpony Company 48,000 180,000 Investment in Soap Company Land Buildingsand Equipment Accumulated Depreciation Goodwill Other Intangibles. .. .. 388,000 50,000 50,000 350,000 320,000 00 (60,000] 0,00 (40,000] Peres Compony Company Soop (100,000 Bonds Payable. Other long-Term Liobilities Common Stock Peres Compony.. Other Paid-In Capital in Excess of Par Peres Company . Retained Earnings-Peres Company. ........................... (200,000! 200,000) (100,000) (214,00 Other Paid-In Capital in Excess of Par Soap Company Net Soles Operating Expenses (50,000) (100,000 (190,000) (450,000) . 300,000 260,000 . . . . . .. . (520,0001 res Company Dividends Declared Soap Company ... Totals 0