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

question 47

Essay

Jernigan Corp.had the following account balances at 12/1/17:
$$\begin{array} { l r } \text { Receivables } & \$ 96,000\\\text { Inventory } & 240,000\\\text { Land } & 720,000\\\text { Building } & 600,000 \\\text { Liabilities } & 480,000 \\\text { Common stock } & 120,000\\\text { Additional paid-in capital } & 120,000 \\\text { Retained earnings, 12/1/1Z } & 840,000\\\text { Revenues } & 360,000\\\text { Expenses } & 264,000\end{array}$$
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 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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