Problem $8-6$ aO $,10$ Worksheet, direct and indirect holding, intercompany mer$-$

chandise, machine. The following diggram depics the nelarionships among Mary

Chandise, machine. The following diagram depics the relaria

On January $2,2018,$ Joan Company sells a machine so Mary Compary for $$20\mathrm{.}000.$ The

machine has a book value of $$10,000,$ widh an estimated life of five yvars and is being depre$-$

ciated on a straighe$-$line basis.

Trial balance of the three companies puepared from general ledger acousut balences on

December $31,2018,$ ane an follows

Prepare the worksheet necessary to produce the consolidated financial statements of Mary

Company and its subsidiaries as of December $31,2018.$ Include the determination and distri$-$

bution of excess and income distribution schedules. Any excess of cost is assumed to be attribu$-$

table to goodwill.