On April 1 2015 Benton Corporation purchased 80 of the

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On April 1, 2015, Benton Corporation purchased 80% of the outstanding stock of Crandel
Company for $425,000. A condensed balance sheet of Crandel Company at the purchase date
is shown below.All book values approximated fair values on the purchase date. Any excess cost
was attributed to goodwill.The following information was gathered pertaining to the first two
years of operation since Benton's purchase of Crandel Company stock:a. Intercompany
merchandise sales were summarized as follows:b. On March 31, 2017, Benton owed Crandel
$10,000, and Crandel owed Benton $5,000 as a result of the intercompany sales.c. Benton paid
$25,000 in cash dividends on March 20, 2016 and 2017. Crandel paid its first cash dividend on
March 10, 2017, giving each share of outstanding common stock a $0.15 cash dividend.d. The
trial balances of the two companies as ofMarch 31, 2017, follow:1. Prepare the worksheet
necessary to produce the consolidated financial statements of Benton Corporation and its
subsidiary for the year ended March 31, 2017. Include the value analysis and a determination
and distribution of excess schedule and the income distribution schedules.2. Prepare the formal
consolidated income statement for the fiscal year endingMarch 31, 2017.View Solution:
On April 1 2015 Benton Corporation purchased 80 of the

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