70%, equity, beginning and ending inventory, parent and subsidiary seller. Refer to the preceding facts for Panther's acquisition of Snake common stock. On January 1, 20X2, Panther held merchandise acquired from Snake for $10,000. This beginning inventory had an applicable gross pro?t of 25%. During 20X2, Snake sold $40,000 worth of merchandise to Panther. Panther held $6,000 of this merchandise at December 31, 20X2. This ending inventory had an applicable gross pro?t of 30%. Panther owed Snake $11,000 on December 31 as a result of this intercompany sale.
On January 1, 20X2, Snake held merchandise acquired from Panther for $15,000. This beginning inventory had an applicable gross pro?t of 40%. During 20X2, Panther sold $60,000 worth of merchandise to Snake. Snake held $22,000 of this merchandise at December 31, 20X2. This ending inventory had an applicable gross pro?t of 35%. Snake owed Panther $23,000 on December 31 as a result of this intercompany sale.
1. Prepare a value analysis and a determination and distribution of excess schedule for the investment in Snake.
2. Complete a consolidated worksheet for Panther Corporation and its subsidiary Snake Corporation as of December 31, 20X2. Prepare supporting amortization and income distribution schedules.