On April 1, 2015, Benton Corporation purchased 80% of the outstanding stock of Crandel Company for $425,000. A condensed balance sheet of Crandel Company at the purchase date is shown below.

All book values approximated fair values on the purchase date. Any excess cost was attributed to goodwill.
The following information was gathered pertaining to the first two years of operation since Benton's purchase of Crandel Company stock:
a. Intercompany merchandise sales were summarized as follows:

b. On March 31, 2017, Benton owed Crandel $10,000, and Crandel owed Benton $5,000 as a result of the intercompany sales.
c. Benton paid $25,000 in cash dividends on March 20, 2016 and 2017. Crandel paid its first cash dividend on March 10, 2017, giving each share of outstanding common stock a $0.15 cash dividend.
d. The trial balances of the two companies as ofMarch 31, 2017, follow:

1. Prepare the worksheet necessary to produce the consolidated financial statements of Benton Corporation and its subsidiary for the year ended March 31, 2017. Include the value analysis and a determination and distribution of excess schedule and the income distribution schedules.
2. Prepare the formal consolidated income statement for the fiscal year endingMarch 31, 2017.

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Assets Liabilities and Equity $180,000 Liabilities $100,000 200,000 100,000 100,000 $500,000 Current assets Long-lived assets (net 320,000 Common stock. Paid-in capital in excess ofpar Retained earnings $500,000 ilities and equity Merchandise Remaining i Purchaser's Tran saction Benton to Crandel Crandel to Benton Benton to Crandel Crandel to Benton Sales $40,000 20,000 32,000 30,000 Date Gross Profit Ending Inve April 1, 2015 to 20% $9,000 4,000 March 31, 2016 April 1, 2016to 20 6,000 3,000 March 31, 2017 Crandel ion Compa 44,300 80,000 Investment in randel Company .. .. 60,000 Bonds Payable (200,000 Sales. (880,000) 630,000 Ot 130,000 25,000 81,000 30,000 her Expenses Dividends Declared Totals