USA: +1 (725) 712-1730 
Sign in
On January 1, 20X7, Pell acquired 90% of Sell for $200,000 plus $15,000 in acquisition costs. On the date of acquisition, Sell had the following balance sheet:
An appraisal indicates that the following items have fair values that differed from their book values:
Immediately after the purchase, Pell had the following balance sheet:
INSTRUCTIONS:
(1) Record the investment in Sell.
(2) Prepare a value analysis schedule.
(3) Prepare a determination and distribution of excess schedule.
(4) Prepare all required elimination entries for the January 1, 20X7 consolidated worksheet in general journal format.
(5) Complete a consolidated worksheet for Pell and its subsidiary Sell as of January 1, 20X7.
(6) Prepare a consolidated balance sheet in good form as of January 1, 20X7.
an example as following,
Sell Company Balance Sheet January 1, 20×7 Assets Liabilities and Equity Accounts Receivable Inventory Land Buildings Accunulated Depreciation Equipment Accumulated Depreciation Goodwill Total Assets $40,000 Cument Liabilities 160,000 Bonds Payable 60,000 Common Stock, $1 par 150,000 Paid-in Capital (20,000) Retained Earnings $60,000 100,000 150,000 50,000 100,000 50,000 (10.000) 30,000 $460.000 Total Liabilities and Equity $460.000
Expert Answer
