On January 1, 2011, Peanut Company acquired 80% of the common stock of Salt Company for $200,000. On this date, Salt had total owners’ equity of $200,000. During 2011 and 2012, Peanut appropriately accounted for its investment in Salt using the sophisticated equity method.

Any excess of cost over book value is attributable to inventory (worth $12,500 more than cost), to equipment (worth $25,000 more than book value), and to goodwill. FIFO is used for inventories. The equipment has a remaining life of four years, and straight-line depreciation is used. On January 1, 2012, Peanut held merchandise acquired from Salt for $20,000. During 2012, Salt sold merchandise to Peanut for $40,000, $10,000 of which was still held by Peanut on December 31, 2012. Salt’s usual gross profit is 50%.
On January 1, 2011, Peanut sold equipment to Salt at a gain of $15,000. Depreciation is being computed using the straight-line method, a 5-year life, and no salvage value. The following trial balances were prepared for the Peanut and Salt companies for December 31, 2012:
Required
Complete the worksheet for consolidated financial statements for the year ended December 31, 2012. Include any necessary determination and distribution of excess schedule and income distribution schedules.

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.130,000 241,000 .284,000 20,000 140,000 375,000 50,000 235,000 Other Current Assets … Investment in Salt Company 80,000 200,000 (120,000 (30,000] 20,000 ...., 70,000] 100,000 (200,000 (50,000] (200,000 (50,000] (100,000 (50,000) (297,000) (150,000! (600,000 (315,000) 150,000 60,000 Buildings and Equipment. . .. Accumulated Depreciation Other Intangible Assets. Current Liabilities..._.. Other Long-Term Liabilities . Common Stock PaidIn Capital in Excess of Par. Relained Earnings, January 1, 2012. .. Sales Cost of Goods Sold Operating Expenses Subsidiary Income... Dividends Declared . 350,000 150,000 (83,000) 60,000 20,000