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On January 1, 2018, Palmer Company acquired Snead Company. Palmer paid $880,000 for 80% of Sneads common stock. On the date of acquisition, Snead had the following balance sheet:

Snead Company

Balance Sheet

January 1, 2018

Assets Liabilities and Equity

Accounts receivable	$120,000	Accounts payable	$ 80,000
Inventory	80,000	Bonds payable	200,000
Land	120,000	Common stock $1 par	20,000
Buildings	400,000	Paid-in capital in excess of par	180,000
Accumulated depreciation	(100,000)	Retained earnings	224,000
Equipment	144,000
Accumulated depreciation	(60,000)
Total assets	$704,000	Total Liabilities & equity	$704,000

Buildings, which have a 20-year life, are understated by $200,000. Equipment, which has a 5-year life, is understated by $76,000. Any remaining excess is considered goodwill. Palmer uses the simple equity method to account for its investment in Snead.

Palmer and Snead had the following trial balances on December 31, 2019:

Palmer Snead

Company Company

Cash	48,000	264,000
Accounts Receivable	180,000	90,000
Inventory	240,000	112,000
Land	200,000	120,000
Investment in Snead	944,000
Buildings	1,600,000	400,000
Accumulated Depreciation	(440,000)	(130,000)
Equipment	300,000	144,000
Accumulated Depreciation	(180,000)	(92,000)
Accounts Payable	(160,000)	(204,000)
Bonds Payable		(200,000)
Common Stock	(200,000)	(20,000)
Paid-In Capital in Excess of Par	(1,600,000)	(180,000)
Retained Earnings, January 1, 2019	(650,000)	(284,000)
Sales	(1,600,000)	(700,000)
Cost of Goods Sold	900,000	417,000
Depreciation ExpenseBuildings	60,000	15,000
Depreciation ExpenseEquipment	30,000	16,000
Other Expenses	320,000	196,000
Interest Expense		16,000
Subsidiary Income	(32,000)
Dividends Declared	40,000	20,000
Totals	0	0

On January 1, 2019, Palmer held merchandise sold to it by Snead for $24,000. This beginning inventory had an applicable gross profit of 25%. During 2019, Snead sold merchandise to Palmer for $150,000. On December 31, 2019, Palmer held $36,000 of this merchandise in its inventory. This ending inventory had an applicable gross profit of 30%. Palmer owed Snead $40,000 on December 31 as a result of this intercompany sale.

On January 1, 2018, Palmer sold equipment with a book value of $60,000 to Snead for $100,000. Depreciation is computed over a 5-year life, using the straight-line method.

Required: Please prepare the following:

1. A value analysis, a D&D schedule, an amortization schedule and the schedule for the worksheet entries related to intercompany sales.
2. In general journal entry form, the entries that would be made on a consolidated worksheet for the year 2019.
3. The income distribution schedules to show the distribution of consolidated net income of $308,000 for the year 2019.

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