On January 1, 2016, Parent Company purchased 100% of the common stock of Subsidiary Company for $280,000.On this date, Subsidiary had total owners' equity of $240,000.
?
On January 1, 2016, the excess of cost over book value is due to a $15,000 undervaluation of inventory, to a $5,000 overvaluation of Bonds Payable, and to an undervaluation of land, building and equipment.The fair value of land is $50,000.The fair value of building 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 the excess of cost over book value.?
?
c.Complete the Figure 2-5 worksheet for a consolidated balance sheet as of January 1, 2016.?
?
?

Question

On January 1, 2016, Parent Company purchased 100% of the common stock of Subsidiary Company for $280,000.On this date, Subsidiary had total owners' equity of $240,000.
?
On January 1, 2016, the excess of cost over book value is due to a $15,000 undervaluation of inventory, to a $5,000 overvaluation of Bonds Payable, and to an undervaluation of land, building and equipment.The fair value of land is $50,000.The fair value of building 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 the excess of cost over book value.?
?
c.Complete the Figure 2-5 worksheet for a consolidated balance sheet as of January 1, 2016.?
?
  ?

Quizplus · Accepted Answer

The Answer of On January 1, 2016, Parent Company purchased 100% of the common stock of Subsidiary Company for $280,000.On this date, Subsidiary had total owners' equity of $240,000.
?
On January 1, 2016, the excess of cost over book value is due to a $15,000 undervaluation of inventory, to a $5,000 overvaluation of Bonds Payable, and to an undervaluation of land, building and equipment.The fair value of land is $50,000.The fair value of building 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 the excess of cost over book value.?
?
c.Complete the Figure 2-5 worksheet for a consolidated balance sheet as of January 1, 2016.?
?
  ?

On January 1, 2016, Parent Company Purchased 100% of the Common