Problem 3-9 (LO 2, 5) 100%, equity method worksheet, several adjustments, third year. Refer to the preceding information for Pcraft’s acquisition of Sailair’s common stock. Assume that Pcraft paid $500,000 for 100% of Sailair common stock. Pcraft uses the simple equity method to account for its investment in Sailair. Pcraft and Sailair had the following trial balances on December 31, 20X3:

1. Prepare a zone analysis and a determination and distribution of excess schedule for the investment in Sailair.
2. Complete a consolidated worksheet for Pcraft Corporation and its subsidiary Sailair Corporation as of December 31, 20X3. Prepare supporting amortization and income distribution schedules.