On January 1, 2015, 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 2015 and 2016, 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, 2016, Peanut held merchandise acquired from Salt for $20,000. During 2016, Salt sold merchandise to Peanut for $40,000, $10,000 of which was still held by Peanut on December 31, 2016. Salt's usual gross profit is 50%.

On January 1, 2015, 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, 2016:

Required
Complete the worksheet for consolidated financial statements for the year ended December 31, 2016. Include any necessary determination and distribution of excess schedule and income distribution schedules.

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Peanut Sal mpany Company 130,000 241,000 235,000 284,000 20,000 140,000 Co Inventory, December 31 Other Current Assets Investment in Salt Company Other Long-Term Investments. Land 50,000 80,000 Buildings and Equipmernt Accumulated Depreciation Other Intangible Assets Current Liabilities Bonds Payable. Other long-Term Liabilities Common Stock Paid-In Capital in Excess of Par Retained Eamings, January 1,2016 Sales Cost of Goods Sold Operating Expenses Subsidiary Income. Dividends Declared 375,000 200,000 120,000) (30,000 20,000 50,000) 70,000 (100,000] 200,000) (50,000 200,000 (50,000] 100,000 (50,000] 297,000150,000] (600,000) (315,000 350,000 50,000 60,000 150,000 (83,000 60,000 0) 20,000 0) Totals