DO WORKSHEET FOR Pepper and Salt Company. Excerise 3

Determination and Distribution of Excess Schedule
Price Paid for investment			250,000
Less book value of interest acquired:
	Common Stock ($10)	100,000
	PIC in excess par
	Retained earnings	150,000
	Total equity	250,000
	Interest Acquired	80%	200,000
	Excess of cost over book value		50,000 Amortiztion
	Existing goodwill	0
	Excess Available	50,000
	Adjustment
				50000 Debit
	Goodwill	0
	Extaordinary gain	0
	Total Adjustment	50,000
	Subsidary Income	15,000
	Investment in Salt Company			15,000
	Investment in Salt Company		4000
				4000
	Common Stock- Salt	80,000
	Retained Earnings-Salt	80,000
	Investment in Salt Company			200,000
	Depreciation Expense	5000
	Accumulated Depreciation		5000
		Pepper Company and Salt Company
	Revenue			250,000
	Less Expenses(add 5000 adjustment			-190,000
	Consolidated Net Income			60,000
	Distributed to noncontrolling interesting			-5000
	Distributed to controlling intesting			55,000
Subsidiary Company Salt Income Distribution
		Internally generated net income	$ 25,000
		Adjust Income	$ 25,000
		NCI share..	20%
		NCI	$ 5,000
Parent Pepper Company Income Distribution
Patent amorization(A)	$ 5,000	Internally generated net income	$ 40,000
		80% Salt Adjusted
		Income of 25,000	$ 20,000
		Controlling Interest	$ 55,000
Pepper Company and Salt Company
Consolidated Balance Sheet
December 31 20x1
Current Assets		$ 190,000.00
Deprecaible Fixed Assets	$ 650,000.00
Less: Accumulated Depreciation	$ (131,000.00)
Total Assets		$ 709,000.00
Liabilities and Stockholders Equity
Current Liabilities		$ 100,000.00
Stockholders Equity :
Noncontrolling Interest		$ 54,000.00
Controlling Interest:
Common Stock	$ 300,000.00
Retained Earnings	$ 265,000.00	$ 555,000.00
Total Liabilities and Stockers Equity		$ 709,000.00