On January 1, 2011 Pluto, Inc. purchased 80% of Saturn, Inc. for $1,200,000, Saturns book value was $425,000 ($10,000 of common stock, $90,000 additional paid-in capital and $325,000 retained earnings). Book values and fair value market for Saturns assets and liabilities were the same except for the following: Book Value Fair Market Value Inventory $175,000 $170,000 Building $350,000 $460,000 (20 years) Equipment $162,000 $150,000 (6 years) Land $100,000 $300,000 Patent $125,000 $350,000 (10 years) Bonds Payable $600,000 $575,000 (10 years) Any other excess is due to Goodwill Fixed asset sales On January 1, 2012 Pluto sold equipment to Saturn with a book value of $40,000 for $30,000, the equipment will last for five years On January 1, 2013 Saturn sold equipment to Pluto with a book value of $60,000 for $75,000, the equipment will last for five years Intercompany sales and intercompany receivables and payables During 2015 Pluto had sales of $180,000 to Saturn with a 28% gross profit, Saturn still owes Pluto $9,000 at the end of 2015 During 2015 Saturn had sales of $265,000 to Pluto with a 32% gross profit, Pluto still owes Saturn $12,000 at the end of 2015 Ending Inventory Saturn had $25,000 of the inventory it purchased from Pluto in its 2015 ending inventory Pluto had $30,000 of the inventory it purchased from Saturn in its 2015 ending inventory Beginning Inventory Saturn had $22,000 of the inventory it purchased from Pluto in its 2014 ending inventory (2015 beginning inventory) with a 31% gross profit Pluto had $34,000 of the inventory it purchased from Saturn in its 2014 ending inventory (2015 beginning inventory) with a 35% gross profit Investment in Sub and Retained Earnings At the end of 2015, Plutos Investment in Sub account had a balance of $1,564,000 Before closing out 2015s net income and dividends, Saturns retained earnings balance was $685,000 Net Income and Dividends Plutos net income on its own in 2015 was $465,000 and paid $125,000 in dividends Saturns net income on its own in 2015 was $160,000 and paid $65,000 in dividends

A) Perform the determination and distribution schedule