Jernigan Corp.had the following account balances at 12/31/X1:
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Several of Jernigan's accounts have fair values that differ from book value: Land - $480,000;Building - $720,000;Inventory - $336,000;and Liabilities - $396,000.
Inglewood Inc.obtained all of the outstanding common shares of Jernigan by issuing 20,000 shares of common stock having a $6 par value,but a $66 fair value.Stock issuance costs amounted to $12,000.
Required:
Prepare a fair value allocation and goodwill schedule at the date of the combination.

Question

Jernigan Corp.had the following account balances at 12/31/X1:
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Several of Jernigan's accounts have fair values that differ from book value: Land - $480,000;Building - $720,000;Inventory - $336,000;and Liabilities - $396,000.
Inglewood Inc.obtained all of the outstanding common shares of Jernigan by issuing 20,000 shares of common stock having a $6 par value,but a $66 fair value.Stock issuance costs amounted to $12,000.
Required:
Prepare a fair value allocation and goodwill schedule at the date of the combination.

Quizplus · Accepted Answer

The Answer of Jernigan Corp.had the following account balances at 12/31/X1:
SHAPE \* MERGEFORMAT
  
Several of Jernigan's accounts have fair values that differ from book value: Land - $480,000;Building - $720,000;Inventory - $336,000;and Liabilities - $396,000.
Inglewood Inc.obtained all of the outstanding common shares of Jernigan by issuing 20,000 shares of common stock having a $6 par value,but a $66 fair value.Stock issuance costs amounted to $12,000.
Required:
Prepare a fair value allocation and goodwill schedule at the date of the combination.

Jernigan Corp.had the Following Account Balances at 12/31/X1