29 Jun Question 11. Supernova Company had the following summarized balance sheet on December 31, 20X1:
Question
11. Supernova Company had the following summarized balance sheet on December 31, 20X1:
Assets
$
200,000
Accounts receivable………………………………
Inventory……………………………………….
450,000
Property and plant (net)………………………….
600,000
Goodwill………………………………………..
150,000
…………………………………………Total
$1,400,000
==========
Liabilities and Equity
$
600,000
Notes payable……………………………………
Common stock, $5 par……………………………..
300,000
Paid-in capital in excess of par…………………..
400,000
Retained earnings………………………………..
100,000
…………………………………………Total
$1,400,000
==========
The fair value of the inventory and property and plant is $600,000 and $850,000, respectively.
Required:
a. Assume that Redstar Corporation purchases 100% of the common stock of Supernova Company for $1,800,000. What value will be assigned to the following accounts of the Supernova Company when preparing a consolidated balance sheet on December 31, 20X1?
(1)
Inventory
_________
(2)
Property and plant
_________
(3)
Goodwill
_________
(4) Noncontrolling interest _________
b. Prepare a supporting determination and distribution of excess schedule.
2-23
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