Use the preceding information for Palto’s purchase of Saleen common stock. Assume Palto purchases 80% of the Saleen common stock for $300,000 cash. Palto has the following balance sheet immediately after the purchase:

In an attempt to expand its operations, Palto Company acquires Saleen Company on January 1, 2015. Palto pays cash in exchange for the common stock of Saleen. On the date of acquisition, Saleen has the following balance sheet:

Required

1. Prepare the value analysis and the determination and distribution of excess schedule for the investment in Saleen.
2. Complete a consolidated worksheet for Palto Company and its subsidiary Saleen Company as of January 1, 2015.