100% purchase, bargain, elimination entries only. On March 1, 20X5, Carlson Enterprises purchased a 100% interest in Express Corporation for $400,000.

Express Corporation had the following balance sheet on February 28, 20X5:

 Carlson Enterprises received an independent appraisal on the fair values of Express Corporation’s assets. The controller has reviewed the following figures and accepts them as reasonable.

 

1. Record the investment in Express Corporation.

2. Prepare a zone analysis and a determination and distribution of excess schedule.

3. Prepare the elimination entries that would be made on a consolidated worksheet prepared on the date of acquisition.

Assets Accounts receivable Inventory. Land.. Buildings. Accum. depr.-building Equipment. Accum. depr.-equipment Total assets.. Express Corporation Balance Sheet For the Month Ended February 28, 20X5 $ 60,000 80,000 40,000 300,000 (120,000) 220,000 (60,000) $ 520,000 Liabilities and Equity Current liabilities.. Bonds payable Common stock... Paid-in capital in excess of par Retained earnings.. Total liabilities and equity ***** $ 50,000 100,000 50,000 250,000 70,000 $520,000