P 9-1 Schedule for allocating income (unrealized profits and goodwill) The affiliation structure for Pad Corporation and its subsidiaries is diagrammed as follows: The incomes and dividends for the affiliates for 2011 are (in thousands): Pad Sal Axe Ban Separate income (loss) $500 $300 $150 $(20) Dividends 200 140 50

ADDITIONAL INFORMATION

1. Axe sold land to Sal during 2011 at a $20,000 gain. The land is still held by Sal.

2. Sal is amortizing a previously unrecorded patent of Axe at the rate of $12,000 per year. (Total amortization is $20,000.)

3. Pad is amortizing a previously unrecorded patent acquired from Sal with a book value of $360,000 over its remaining nine-year life. Prepare