Answer Happy

on Problem 5 (22 points) Pop Corporation acquired 70% of the outstanding common stock of Son Corporation Januaary 1, 2016, for $350,000 cash. Immediately after this acquisition the balance information for the two companies was as follows: sheet Separate Balance Sheets January 1, 2016 Pop Book Value Son Book Value Son Fair Value Assets Cash Accounts receivable Inventories Land Building-net Equipment.net Investment in Son Total assets $ 70.000 $ 160,000 140.000 200 000 220.000 160.000 350.000 $1,300,000 $ 40.000 $ 40.000 60,000 60,000 60,000 100.000 100 000 120.000 140.000 180.000 80,000 60.000 480,000 $ 560,000 Liabilites and Stockholder' Equity Currents liabilities Accounts payable Other current liablities Capital stock. $20 par Retained earnings Total equities 160.000 18,000 $ 180,000 $ 20.000 1,000,000 100.000 $1,300.000 160.000 100.000 200,000 20.000 480.000 Instructions a. Prepare the schedule to allocate the investment fair value/book value differential b. Prepare the journal entry to allocate the unamortized excess to individual assets and liabilities and to goodwill C. Prepare Consolidated Balance Sheets Working Papers After Combination as of January 1 2016