(1) Company Parent NCI Implied Price Value Value Analysis Schedule Fair Value (80%) (20%) Company fair value ........................................... $400,000 $320,000 $80,000 Fair value of net assets excluding goodwill ...... 340,000 272,000 68,000 Goodwill ............................................................ $ 60,000 $ 48,000 $12,000

Question: How is the net asset equal to 340,000? I got 440,00

Net asset
Inventory	60,000
other current asset	180,000
Land	50,000
buildings and equipment	350,000
accum dep	-60,000
current liab	-40,000
bonds payable	-100,000
net asset	440,000

compare the entries. Problem 3-2 (LO 2) Simple equity method adjustments, consolidated work- sheet. On January 1, 2015, Paro Company purchases 80% of the common stock of Solar Company for $320,000. Solar has common stock, other paid-in capital in excess of par, and retained earnings of $50,000, $100,000, and $150,000, respectively. Net income and dividends for two years for Solar are as follows: Net income Dividends.. 2015 2016 $60,000 $90,000 20,000 30,000 On January 1, 2015, the only undervalued tangible assets of Solar are inventory and the building. Inventory, for which FIFO is used, is worth $10,000 more than cost. The inventory is sold in 2015. The building, which is worth $30,000 more than book value, has a remaining life of 10 years, and straight-line depreciation is used. The remaining excess of cost over book value is attributed to goodwill. 1. Using this information and the information in the following trial balances on December 31, 2016, prepare a value analysis and a determination and distribution of excess schedule: Required Inventory, December 31 Other Current Assets ... Investment in Solar Company Land...... Buildings and Equipment. Accumulated Depreciation Goodwill... Other Intangibles.. Current Liabilities. Paro Solar Company Company 100,000 50,000 136,000 180,000 400,000 50,000 50,000 350,000 320,000 (100,000) (60,000) 20,000 (120,000) (40,000) (continued) Bonds Payable. Other Long-Term Liabilities Common Stock Paro Company Other Paid In Capital in Excess of ParParo Company Retained Earnings Paro Company Common Stock-Solar Company. Other Paid In Capital in Excess of Par-Solar Company. Retained Earnings Solar Company.. Net Sales ... Cost of Goods Sold Operating Expenses Subsidiary Income.. Dividends DeclaredParo Company. Dividends Declared Solar Company Totals ... Paro Solar Company Company (100,000) (200,000) (200,000) (100,000) (214,000) (50,000) (100,000) (190,000) (520,000) (450,000) 300,000 260,000 120,000 100,000 172,000) 50,000 30,000