A. Prepare a schedule of the fair value allocation schedule, including goodwill, if any, and including fair value excess over book value depreciation or amortization schedule, if any.

I already figured out requirement A, but I don't know how to solve requirement B.

B. Assume Starbucks acquired 100% of Dunkin and both companies remained separate legal entities after the acquisition.

-->Prepare all consolidation journal entries as of the date of acquisition, Jan 1 2020.

Consolidation Problem On January 1 2020, Starbucks acquired 100% of Dunkin's outstanding common stock for $1,000,000 in cash. As of January 1 2020, the following fair values where determined. Dunkin's Buildings had a FV in excess of BV of $150,000 Dunkin's Equipment had a FV in excess of BV of $40,000 Dunkin had an unrecorded patent with a FMV of $10,000 For all other Dunkin Accounts as of Jan 1, 2020, all other GAAP book values equaled fair values. Here is the balance sheet information on the date of acquisition (Jan 1 2020) All balances are normal balances Jan 1 2020 Starbucks Dunkin Donuts Cash 100,000 100,000 A/R 300,000 200,000 Investment in Dunkin 842,000 N/A Equipment 258,000 200,000 Building 900,000 400,000 Total Assets 2,600,000 900,000 Accounts Payable (200,000) (50,000) Loans (400,000) (150,000) Total Liabilities 600,000 200,000 Common Stock 100,000 100,000 APIC 300,000 200,000 Retained Earnings 1,600,000 400,000 Total Liabilities and Equity 2,600,000 900,000 Particulars Amount Cash 100000 AIR equipment 200000 240000 (200000+40000) 550000 (400000+150000) Building Unrecorded patent 10000 Total FV of Assets acquired 1100000 A/P 50000 Loans 150000 Total FV of Liabilities Acquired 200000 Fair value excess over book value Particulars BV FV excess over BV NEVI Equipment 200000 40000 240000 Building 400000 150000 550000 Journal entry to record goodwill and assets with liabilities acquired at FV FV of assets 1100000 Goodwill 100000 FV of Liabilities 200000 Cash 1000000