2. Use the above financial information and the acquisition method to consolidate Seth and Lucy Co. on the date of acquisition, assuming that Arhtur Co. purchased 100% of Lucy common stock. The purchase price and fee payments are the same as above. Lucy was NOT dissolved after the acquisition.
Journal entries recorded by Seth Company related to the acquisition on 01/01/2020
		Debit	Credit
Investment in Lucy
Goodwill
Cash
Common stock
Gain on bargain purchase
Consolidation expense
Cash
Common stock
Cash
Fair Value Adjustment Schedule
Fair value of 100% Lucy
Total equity of Lucy (BV)
Excess of fair value over book value
Adjustment of Lucy's identifiable assets and liabilities
	Adjustment to FV	Worksheet Key
Land
Building
Equipment
Patent
Goodwill
Total
Seth COMPANY AND CONSOLIDATED SUBSIDIARY
Consolidation Worksheet
January 1, 2013
	Seth	Lucy	Consolidation Entries				Consolidated
Accounts	Company	Company		Debit		Credit	Totals
Debit Balances
Cash		20000
Inventory	210000	110000
Land	100000	180000
Buildings (net)	240000	80000
Equipment (net)	160000	50000
Patent
Investment in Lucy
Goodwill
Total debits		440000
Credit Balances
Accounts payable	-50000	-40000
Long-term liabilities	-430000	-200000
Common stock		-80000
Retained earnings, 01/01/13, adjusted for acquisition		-120000
Total credits		-440000