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1) Plant Inc. a calendar year reporting company acquired 80% of Seed Inc.'s outstanding common stock for $ 484,000 on Dec. 31, 2018, when the fair value of Seed's Net Assets was $ 568,000. The following data summarize the fair value calculation: (2 Marks) Life Remaining Book Value Element Common Stock Retained Earnings Amount $ 150,000 135,000 Under-Or-Over Valuation Inventory Land Equipment Covenant -Not To Compete Goodwill Element Total Cost (9700) 48,000 96,000 40,000 108,700 568,000 2 Months Indefinite 8 Years 5 Years Indefinite Plant Inc. & Seed Inc. Worksheet As at Dec 31, 2018 Plant ($) 148,000 103,500 152,500 Seed ($) 47,000 118,000 126,000 Balance Sheet Cash Account Receivable Inventory Investment in Seed - Book Value Excess Cost Land Building & Equipment Accumulated Depreciation Total Assets 228,000 226,400 168,000 400,000 - 16,000 1,410,400 127,000 309,000 -102,000 625,000 Payable & Accruals Long Term Assets Common Stock Retained Earnings Total Liabilities & Equity 265,400 290,000 450,000 405,000 1,410,400 120,000 220,000 150,000 135,000 625,000 You are required to (a) Prepare an Analysis of the Investment Account Through Dec. 31, 2018. Show clearly Book Value and Excess Value calculation by preparing tables. (b) Prepare all consolidation (Elimination Entries) as of Dec. 31, 2018. (c) Prepare a Consolidated Worksheet as at Dec. 31, 2018. 1) Plant Inc. a calendar year reporting company acquired 80% of Seed Inc.'s outstanding common stock for $ 484,000 on Dec. 31, 2018, when the fair value of Seed's Net Assets was $ 568,000. The following data summarize the fair value calculation: (2 Marks) Life Remaining Book Value Element Common Stock Retained Earnings Amount $ 150,000 135,000 Under-Or-Over Valuation Inventory Land Equipment Covenant -Not To Compete Goodwill Element Total Cost (9700) 48,000 96,000 40,000 108,700 568,000 2 Months Indefinite 8 Years 5 Years Indefinite Plant Inc. & Seed Inc. Worksheet As at Dec 31, 2018 Plant ($) 148,000 103,500 152,500 Seed ($) 47,000 118,000 126,000 Balance Sheet Cash Account Receivable Inventory Investment in Seed - Book Value Excess Cost Land Building & Equipment Accumulated Depreciation Total Assets 228,000 226,400 168,000 400,000 - 16,000 1,410,400 127,000 309,000 -102,000 625,000 Payable & Accruals Long Term Assets Common Stock Retained Earnings Total Liabilities & Equity 265,400 290,000 450,000 405,000 1,410,400 120,000 220,000 150,000 135,000 625,000 You are required to (a) Prepare an Analysis of the Investment Account Through Dec. 31, 2018. Show clearly Book Value and Excess Value calculation by preparing tables. (b) Prepare all consolidation (Elimination Entries) as of Dec. 31, 2018. (c) Prepare a Consolidated Worksheet as at Dec. 31, 2018
