During 2017, Away Company acquires a controlling interest in Stallward, Inc. Trial balances of the companies at December 31, 2017, are as follows:

The following information is available regarding the transactions and accounts of the two companies:
a. An analysis of the investment in Stallward, Inc., account follows:

b. The net income of Stallward, Inc., for the nine months ended September 30, 2017, is $25,000.
c. The price paid by the parent on January 1, 2017, to achieve control is considered to be a bargain and will result in a gain (only for the parent).
d. On September 30, 2017, Away Company loans its subsidiary $100,000 on a 1-year, 12% note. Interest and principal are payable in quarterly installments beginning December 31, 2017. The December 31, 2017, payment is made by Stallward but is not received by Away. Away Company has no other notes receivable outstanding.
e. Stallward, Inc.€™s sales principally are engineering services billed at cost plus 50%. During 2017, Away Company is billed for $40,000, of which $16,500 is treated as a deferred charge at December 31, 2017.
f. During the year, parent company sales to the subsidiary total $60,000, of which $10,000 remains in the inventory of Stallward, Inc., at December 31, 2017.
g. In 2017, Away constructs certain tools at a cost of $15,000 and sells them to Stallward, Inc., for $25,000. Stallward, Inc., depreciates such tools using the straight-line method over a 5-year life. One-half year€™s depreciation is taken in the year of acquisition.
Required
Prepare the worksheet necessary to produce the consolidated financial statements of Away Company and its subsidiary for the year ended December 31, 2017. Include the determination and distribution of excess and income distribution schedules.

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Away Stallward, Inc 78,000 100,000 Compan 99,500 100,000 200,000 3,000 4,500 924,000 469,200 1,250,000 (500,000) 25,000 ash . . Accounts Receivable . . . 125,000 500,000 (150,000] 50,000 (80,000) (75,000) (5,000) (100,000 (400,000) (750,000) (425,000) (300,000) .. .(1,605,000) (1,800,000) (43,200) (3,000) 1,350,000 251,000 Sales and Services Subsidiary Income 525,000 174,000 3,000 5,000 Dividends Declared Interest Acquired 70% 20% 90% Description Amount Investment $325,000 105,000 $430,000 income for 2017 43,200 December 31, 2017 dividends for 2017 (4,500) $468,700 Total .