P7-1) Worksheet, blocks, control with first block.
The following determination and distribution of excess schedule is prepared on January 1, 2012, the date on which Palmer Compnay purchases 60% interest in Sharon Company.
D &D
	Company Implied FV	Parent	NCI
Fair Value of Sub.	$300,000	$180,000	120000
Less BV of Interest Acquired:
Common Stock	$100,000
Retained Earnings	$60,000
Total Equity	$160,000	$160,000	$160,000
Interest Acquired		60%	40%
BV		$96,000	$64,000
Excess of FV over BV	$140,000	$84,000	$56,000
Adjustment of Accounts		Amortization	Life
Equipment	$50,000	$5,000	10
Goodwill	$90,000
On December 31, 2013, Palmer Company purchases an additional 20% interest in Sharon Company for $70,000. Sharon's stockholders equity is determined to be the following at that date:
Common Stock	$100,000
Retained Earnings	$85,000
On December 31, 2015 the following trial balances are available:
	Palmer Comp.	Sharon Comp.
Current Assets	$160,000	$80,000
Investment in Sharon Company	$301,000
PPE	$450,000	$170,000
Current Liabilities	$(110,000)	$(20,000)
Common Stock	$(500,000)	$(100,000)
Retained Earnings	$(198,000)	$(100,000)
Sales	$(400,000)	$(110,000)
Subsidiary Income	$(28,000)
COGS	$200,000	$60,000
Other Expenses	$100,000	$15,000
Dividends Declared	$25,000	$5,000
Total	$-	$-
1) Prepare an analysis for the second purchase of Sharon stock by Palmer Company on December 31, 2013.
2) Prepare the worksheet necessary to produce the consolidated financial statements of Palmer Company and its subsidiary as of December 31, 2015. Include an income distribution schedule.