ACCT. 4300: ASSIGNMENT 4B Problem 1 Boon Corporation purchased an 18% interest in Doyle Company on January 1, 20X1, as an available for sale investment for a price of $144,000. On January 1, 20X6, Boon Corporation purchases 17,250 additional shares of Doyle Company from existing shareholders for $603,750. Doyle Company had the following balance sheet just prior to Boon's second purchase: Assets Current assets. Buildings (net).. Land..... Equipment (net). Total assets.. $ 185,000 160,000 300,000 170,000 $815,000 Liabilities and Equity Liabilities..... $ 95,000 Common stock ($4 par)..... 100,000 Paid in Capital.. 250,000 Retained earnings. 370,000 Total liabilities and equity.... $815,000 At the time of the second purchase, Boon determines that Doyle's current assets were understated by $52,000, Land was understated by $78,000, buildings were overstated by $40,000 and equipment was overstated by $34,000 and had a 6-year remaining life. Current liabilities was understated by $5,000. Any remaining excess is attributed to goodwill. 1. Prepare the value analysis and the determination and distribution of excess schedule for the second purchase. 2. Record the investment made by Boon on January 1, 20X6, and any required adjustment of the prior 14% interest. ACCT. 4300: ASSIGNMENT 4B Problem 1 Boon Corporation purchased an 18% interest in Doyle Company on January 1, 20X1, as an available for sale investment for a price of $144,000. On January 1, 20X6, Boon Corporation purchases 17,250 additional shares of Doyle Company from existing shareholders for $603,750. Doyle Company had the following balance sheet just prior to Boon's second purchase: Assets Current assets. Buildings (net).. Land..... Equipment (net). Total assets.. $ 185,000 160,000 300,000 170,000 $815,000 Liabilities and Equity Liabilities..... $ 95,000 Common stock ($4 par)..... 100,000 Paid in Capital.. 250,000 Retained earnings. 370,000 Total liabilities and equity.... $815,000 At the time of the second purchase, Boon determines that Doyle's current assets were understated by $52,000, Land was understated by $78,000, buildings were overstated by $40,000 and equipment was overstated by $34,000 and had a 6-year remaining life. Current liabilities was understated by $5,000. Any remaining excess is attributed to goodwill. 1. Prepare the value analysis and the determination and distribution of excess schedule for the second purchase. 2. Record the investment made by Boon on January 1, 20X6, and any required adjustment of the prior 14% interest