Jernigan Corp Several of Jernigan's Accounts Have Fair Values That Differ from

question 26

Essay

Jernigan Corp. had the following account balances at 12/1/12: $\begin{array}{lr}\text { Receivables } & \$ 96,000 \\\text { Inventory } & 240,000 \\\text { Land } & 720,000 \\\text { Building } & 600,000\\\text { Liabilities } & 480,000 \\\text { Common stock } & 120,000 \\\text { Additional paid-in capital } & 120,000 \\\text { Retained earnings, } 12 / 1 / 12 & 840,000 \\\text { Revenues } & 360,000 \\\text { Expenses } & 264,000\end{array}$ 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, 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 acquisition.