On January 1, 2016, Parent Company Purchased 100% of the Common

question 21

Essay

On January 1, 2016, Parent Company purchased 100% of the common stock of Subsidiary Company for $280,000.On this date, Subsidiary had total owners' equity of $240,000.
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On January 1, 2016, the excess of cost over book value is due to a $15,000 undervaluation of inventory, to a $5,000 overvaluation of Bonds Payable, and to an undervaluation of land, building and equipment.The fair value of land is $50,000.The fair value of building and equipment is $200,000.The book value of the land is $30,000.The book value of the building and equipment is $180,000.
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Required:
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a.Using the information above and on the separate worksheet, complete a value analysis schedule
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b.Complete schedule for determination and distribution of the excess of cost over book value.?
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c.Complete the Figure 2-5 worksheet for a consolidated balance sheet as of January 1, 2016.?
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The process through which individuals acclimate to changes in their environment or circumstances.

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