1. On January 1, 2016, Parent Company purchased 100% ofthe common stock of Subsidiary Company for $320,000. On this date,Subsidiary had total owners' equity of $240,000.
On January 1, 2016, the excess of cost over book value is due toa $15,000 undervaluation of inventory, to a $5,000 overvaluation ofBonds Payable, and to an undervaluation of land, building andequipment. The fair value of land is $50,000. The fair value ofbuilding and equipment is $200,000. The book value of the land is$30,000. The book value of the building and equipment is$180,000.
Required:
a.
Using the information above and on the separate worksheet,complete a value analysis schedule
b.
Complete schedule for determination and distribution of theexcess of cost over book value.
c.
Complete the worksheet for a consolidated balance sheetas of January 1, 2016.
Consolidated
Consolidated
Balance Sheet
Account Titles
NCI
Debit
Credit
Assets:
Inventory
Other Current Assets
Investment in Subsidiary
Land
Buildings
Accumulated Depreciation
Other Intangibles
Total
Liabilities and Equity:
Current Liabilities
Bonds Payable
Common Stock – P Co.
Paid-in Cap. in Exc. - P Co.
Retained Earnings – P Co.
Common Stock – S Co.
Paid-in Cap. in Exc. - S Co.
Retained Earnings – S Co.
NCI
Total
1. On January 1, 2016, Parent Company purchased 100% of the common stock of Subsidiary Company for $320,000. On this da
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answerhappygod
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