Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng

Exercise 2

80% purchase, goodwill, worksheet. Using the data given in Problem 2-6, assume that Adam Company purchases 80% of the common stock of Sampson Company for $380,000 cash. The following comparative balance sheets are prepared for the two companies immediately after the purchase:
1. Prepare the value analysis and the determination and distribution of excess schedule for the investment in Sampson Company.
2. Complete a consolidated worksheet for Adam Company and its subsidiary Sampson Company as of December 31, 2011.
Reference:
100% purchase, goodwill, worksheet. On December 31, 2011, Adam Company purchases 100% of the common stock of Sampson Company for $475,000 cash. On this date, any excess of cost over book value is attributed to accounts with fair values that differ from book values. These accounts of Sampson Company have the following fair values:
The following comparative balance sheets are prepared for the two companies immediately after the purchase:
1. Prepare the value analysis schedule and the determination and distribution of excess schedule for the investment in Sampson Company.
2. Complete a consolidated worksheet for Adam Company and its subsidiary Sampson Company as of December 31, 2011.