Jernigan Corp

question 42

Essay

Jernigan Corp. had the following account balances at 12/1/20:
Several of Jernigan's accounts have fair values that differ from book value. The fair values are: Land - $480,000; Building - $720,000; Inventory - $336,000; and Liabilities - $396,000. Inglewood Inc. acquired all of the outstanding common shares of Jernigan by issuing 20,000 shares of common stock having a $6 par value per share, but a $66 fair value per share. Stock issuance costs amounted to $12,000.Required:Prepare a fair value allocation and goodwill schedule at the date of the acquisition.

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Definitions:

Lawn Mower

A lawn mower is a machine utilizing one or more revolving blades to cut a grass surface to an even height, powered manually or by an engine.

Price Increase

A rise in the cost or value of goods and services, which can affect consumer behavior and inflation rates.

Consumers

Individuals or groups who use goods and services produced within an economy.

Producers

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