Baker Enterprises purchases an 80% interest in Kohlenberg International for $850,000 on January 1, 2015. The estimated fair value of the NCI is $190,000. On the purchase date, Kohlenberg International has the following stockholders’ equity:

Common stock ($10 par). . . . .. .... .. . .... .. . $150,000

Paid-in capital in excess of par . .. .. .. . .. .. .. .. 200,000

Retained earnings .. ... . . .. .... .. .. ... .. . . . . . 400,000

$750,000

Also on the purchase date, it is determined that Kohlenberg International’s assets are understated as follows:

Equipment, 10-yearremaining life .... . .. .... $80,000

Land.. . .. .. .. .. .. .. . .. .. .. .. .. .. . .. . . .. . . . 20,000

Building,20-year remaining life .. .... . .. .... .. 60,000

The remaining excess of cost over book value is attributed to goodwill. The following summarized statements of Baker Enterprises and Kohlenberg International are for the year ended December 31, 2017:

Required
Using the vertical format, prepare a consolidated worksheet for December 31, 2017. Precede the worksheet with a value analysis and a determination and distribution of excess schedule. Include income distribution schedules to allocate the consolidated net income to the noncontrolling and controlling interests.

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Baker Kohlenberg International Enterprises Income Statements: Sales Cost of Goods Sold Operating Expenses. Depreciation Expense Subsidiary (Incomel/Loss (650,000) 260,000 170,000 65,000 16,000 (320,000 240,000 0,000 30,000 Net (Incomel/Loss (139,000) (625,000) (139,000) 764,000) 20,000 Retained Earnings: Retained Earnings, January 1,2017-Baker... Retained Earnings, January 1, 2017-Kohlenberg Net (Incomel/Los (460,000 20,000 10,000 Dividends Declared.. Retained Earmings, December 31, 2017 (430,000) Balance Sheets: Cash.. .. Land Building Accumulated Depreciation-Building. Equipment Accumulated Depreciation-Equime Investment in Kohlenberg International Liabilities Bonds Payable Common Stock-Baker Common Stock-Kohlenberg Paid-In Capital in Excess of Par Retained Earnings, December 31, 2017 288,000 135,000 145,000 900,000 (345,000) 350,000 (135,000) 874,000 (248,000) 170,000 400,000 150,000 500,000 360,000 250,000 (90,000] 40,000 200,000 (1,200,000) 150,000 200,000 430,000] 764,000) Balance