Supernova Company had the following summarized balance sheet on December 31, 20X1:
The fair value of the inventory and property and plant is $600,000 and $850,000, respectively.
Required:
a.Assume that Redstar Corporation purchases 100% of the common stock of Supernova Company for $1,800,000. What value will be assigned to the following accounts of the Supernova Company when preparing a consolidated balance sheet on December 31, 20X1?(1)Inventory_________(2)Property and plant_________(3)Goodwill_________(4)Noncontrolling interest_________
b.Prepare a valuation schedule
c.Prepare a supporting determination and distribution of excess schedule.

Question

Supernova Company had the following summarized balance sheet on December 31, 20X1:  
The fair value of the inventory and property and plant is $600,000 and $850,000, respectively.
Required: 
a.Assume that Redstar Corporation purchases 100% of the common stock of Supernova Company for $1,800,000. What value will be assigned to the following accounts of the Supernova Company when preparing a consolidated balance sheet on December 31, 20X1?(1)Inventory_________(2)Property and plant_________(3)Goodwill_________(4)Noncontrolling interest_________
b.Prepare a valuation schedule
c.Prepare a supporting determination and distribution of excess schedule.

Quizplus · Accepted Answer

The Answer of Supernova Company had the following summarized balance sheet on December 31, 20X1:  
The fair value of the inventory and property and plant is $600,000 and $850,000, respectively.
Required: 
a.Assume that Redstar Corporation purchases 100% of the common stock of Supernova Company for $1,800,000. What value will be assigned to the following accounts of the Supernova Company when preparing a consolidated balance sheet on December 31, 20X1?(1)Inventory_________(2)Property and plant_________(3)Goodwill_________(4)Noncontrolling interest_________
b.Prepare a valuation schedule
c.Prepare a supporting determination and distribution of excess schedule.

Supernova Company Had the Following Summarized Balance Sheet on December