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Answers given. Please explain the calculations The following information applies: Huey Company acquires 100% of the stock of Solar Corporation on January 1, 2019, for

Answers given. Please explain the calculations

The following information applies:

Huey Company acquires 100% of the stock of Solar Corporation on January 1, 2019, for $2,400,000 cash. As of that date Solar had the following account balances:

Book Value

Fair value

Cash

$300,000

$300,000

Accounts receivable

325,000

325,000

Inventory

350,000

$400,000

Building-net (10 year life)

1,000,000

900,000

Equipment-net (5 year life)

300,000

400,000

Land

600,000

900,000

Accounts Payable

125,000

125,000

Bonds Payable (Face amount $1,000,000; due 12/31/2023)

2,000,000

2,050,000

Common stock

700,000

Additional paid-in capital

250,000

Retained earnings

880,000

In 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively. In addition, Solar paid dividends of $16,000 in both years. Inventory is assumed to be sold in 2019. Assume straight line amortization/ depreciation for assets and bonds payable.

34. What amount of Solar's land would be included on the consolidated balance sheet at December 31, 2020?

b. $ 900,000

35. What amount of Solars Bonds Payable would be included on the consolidated balance sheet at December 31, 2020?

b. $2,030,000

36. Compute the AAP amortization for 2020.

a. $ -0-

37. What amount of Solar's single legal entity stockholders' equity will be included in the consolidated balance sheet at date of acquisition?

a. $ -0-

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