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

Exercise 6

100% purchase, goodwill, worksheet. Use the preceding information for Palto's purchase of Saleen common stock. Assume Palto purchases 100% of the Saleen common stock for $500,000 cash. Palto has the following balance sheet immediately after the purchase:
1. Prepare the value analysis schedule and the determination and distribution of excess schedule for the investment in Saleen.
2. Complete a consolidated worksheet for Palto Company and its subsidiary Saleen Company as of January 1, 2011.