Advanced Financial Accou Student Name: Student ID: Question 2: Stilt Corporation purchased a 40% interest in the common stock of Shallow Company for $7,500,000 on January 1, 2015, when the book value of Shallow's net equity was $10,000,000. Shallow's book values equaled their fair values except for the following items: A D rence Inventories Land Building.net Equipment-net Book Value $400,000 100,000 300,000 320,000 Fair Value $500,000 300,000 200,000 400,000 Required: 1. Prepare a schedule to allocate any excess purchase cost to identifiable assets and goodwill for the year 2015. (you may use the schedule above) 2. Prepare all necessary entries by Stilt at the end of year 2015 assuming that Shallow Company reported Net income $2,000,000 and distributed cash dividends $100,000 for year 2015. Inventories were sold during 2005; the remaining useful life for building and equipment 4 years each 3. What is Stilt's investment in Shadow On December 31,2015