Chapter 3, Problem 3B.2.2AE

To determine

Consolidated Income statement and determination and distribution of excess income schedule

Consolidated Income Statement is that statement which reflects operating activities of business. Through this net profit is identified by the deducting revenue from expenses.

In determination and distribution of excess income schedule Through this price paid for subsidiary equity is compared with predetermine imbalance which is occurred in the consolidated worksheet because of elimination of in the investment account against the underlying subsidiary equity.

To calculate:

Through the information given in the question, prepare consolidation income stament with the supporting of determination and distribution of excess schedule.