Supernova Company had the following summarized balance sheet on December 31, 20?1:

The fair value of the inventory and property and plant is $600,000 and $850,000, respectively.

Assume that Redstar Corporation exchanges 45,000 of its $3 par value shares of common stock, when the fair price is $4/share, for 1008 of the common stock of Supernova Company. Redstar incurred indirect acquisition costs of $10,000.(100% purchase with Extraordinary Gain)

Required:

a. What journal entry will Redstar Corporation record for the investment in Supernova?

b. Prepare a supporting determination and distribution of excess schedule

c. Prepare Redstar's elimination and adjustment entry for the acquisition of Supernova.

Accounts receivable.. Inventory..... Property and plant (net) Goodwill.. Total... Assets Liabilities and Equity Notes payable.. Common stock, $5 par. Paid-in capital in excess of par. Retained earnings... Total.... 200,000 450,000 600,000 150,000 $1,400,000 $ == 600,000 300,000 400,000 100,000 $1,400,000 $