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, which included retained earnings of $100,000. During 2015 and 2016, Peanut accounted for its investment in Salt using the simple 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. Any remaining excess is attributed to goodwill.

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 condensed statements 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 Com Income Statement: Net Sales Cost of Goods Sold Operating Expenses $ (600,000 $(315,000 150,000 60,000 84000_ 350,000 150,000 . . Net Income 184000 (105 Retained Eamings Statement: Balance, January 1, 2016 Net Income (from above Dividends Declared $(320,000 $(150,000 (184,000 105,000 20,000 60,000 Balance, December 31, 2016 (444000 1235 Consolidated Balance Sheet Inventory, December 31 Other Current Assets Investment in Salt Company Other Long Term Investments Land Building and Equipment Accumulated Depreciation Other Intangible Assets $130,000 50,000 235,000 241,000 308,000 20,000 140,000 375,000 80,000 200,000 (120,000) 30,000] 20,000 50,000) 70,000) (100,000 (200,000) (50,000] 200,000) (50,000) (100,000)(50,000] Bonds Payable Other Long Term Liabilities Common Stock. Paid-In Capital in Excess of Par Retained Earnings, December 31, 2016 35 Totals