Refer to the preceding common information for Paulcrafts acquisition of Switzers common stock. Assume that Paulcraft pays

Question:

Refer to the preceding common information for Paulcraft’s acquisition of Switzer’s common stock. Assume that Paulcraft pays $440,000 for 80% of Switzer common stock. Paulcraft uses the simple equity method to account for its investment in Switzer. Paulcraft and Switzer have the following trial balances on December 31, 2017:

Cash Accounts Receivable Inventory Land. Investment in Switzer Buildings Accumulated Depreciation Equipment

Cost of Goods Sold Depreciation Expense - Buildings. Depreciation Expense -Equipment. Other Expenses Interest

Required

1. Prepare a value analysis and a determination and distribution of excess schedule for the investment in Switzer.
2. Complete a consolidated worksheet for Paulcraft Corporation and its subsidiary Switzer Corporation as of December 31, 2017. Prepare supporting amortization and income distribution schedules.

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