A simple planetary gear arrangement is provided for a transfer case. The transfer case includes a carrier connected to the transfer case input. The ring gear is connected with a rear axle. The sun gear is connectable with a front axle through a clutching arrangement including a one-way clutch and a dog clutch in parallel. The one-way clutch and the dog clutch are independently engageable. The sun gear is selectively groundable through a friction clutch. Accordingly, the simple planetary gear set functions as a gear ratio producing device when the friction clutch is engaged, and as a center differential when the dog clutch or one-way clutch is engaged.