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as of January 1, 2013 Problem 2-10 (LO 3. 4. 5. 6. 7) 80% purchase, goodwill, worksheet. Use the preceding information for Palto's purchase of

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as of January 1, 2013 Problem 2-10 (LO 3. 4. 5. 6. 7) 80% purchase, goodwill, worksheet. Use the preceding information for Palto's purchase of Saleen common stock. Assume Palto purchases 80% of the Saleen common stock for $400,000 cash. The shares of the noncontrolling interest have a fair value of $46 each. Palto has the following balance sheet immediately after the purchase: Palto Company Balance Sheet January 1, 2015 Assets $ $ Cash.. 161,000 65,000 80,000 400,000 Liabilities and Equity Current liabilities Bonds payable ................. Common stock ($1 par)......... Paid-in capital in excess of par ... Retained earnings .......... 80,000 200,000 20,000 180,000 546,000 Accounts receivable Inventory.. Investment in Saleen.. Lond.. Buildings ....... P.ccumulated depreciation Equipment ..... Accumulated depreciation ... Total assets... 250,000 (80,000) 90,000 (40,000) $1,026,000 Total liabilities and equity ..... $1,026,000 *** Required 1. Prepare the value analysis schedule and the determination and distribution of excess schedule for the investment in Saleen. 2. Complete a consolidated worksheet for Palto Company and its subsidiary Saleen Company as of January 1, 2015. en Company op k of Saleen. On the Use the following information for Problems 2-8 through 2-11: In an arrempt to expand its operations, Palto Company acquires Salcen January 15. Palto pay cash in exchange for the common stock of care o cuisition, Saleen has the following balance sheet: Saleen Company Balance Sheet January 1, 2015 . . . . . . . . . .. $ 40,000 .. 100.000 Inventory ........ Land.......... 10,000 90,000 60,000 Liabilities and Equity Assets Accounts receivable .. $ 20,000 Current liabilities .... 50,000 Bonds payable ................. 40,000 Common stock ($1 par).... Buildings ............... 200,000 Paid.in capital in excess of par ..... Accumulated depreciation ..... (50,000) Retained earnings .. 60,000 Accumulated depreciation ..... (20,000) Total assets. ............... $300,000 Total liabilities and equity . . . . . . . An appraisal provides the following fair values for assets: Accounts receivable .......... Equipment ............ $300,000 Inventory ........ Land......... Buildings .......... Equipment... Copyright ......... $ 20,000 60,000 80,000 320,000 60,000 50,000 as of January 1, 2013 Problem 2-10 (LO 3. 4. 5. 6. 7) 80% purchase, goodwill, worksheet. Use the preceding information for Palto's purchase of Saleen common stock. Assume Palto purchases 80% of the Saleen common stock for $400,000 cash. The shares of the noncontrolling interest have a fair value of $46 each. Palto has the following balance sheet immediately after the purchase: Palto Company Balance Sheet January 1, 2015 Assets $ $ Cash.. 161,000 65,000 80,000 400,000 Liabilities and Equity Current liabilities Bonds payable ................. Common stock ($1 par)......... Paid-in capital in excess of par ... Retained earnings .......... 80,000 200,000 20,000 180,000 546,000 Accounts receivable Inventory.. Investment in Saleen.. Lond.. Buildings ....... P.ccumulated depreciation Equipment ..... Accumulated depreciation ... Total assets... 250,000 (80,000) 90,000 (40,000) $1,026,000 Total liabilities and equity ..... $1,026,000 *** Required 1. Prepare the value analysis schedule and the determination and distribution of excess schedule for the investment in Saleen. 2. Complete a consolidated worksheet for Palto Company and its subsidiary Saleen Company as of January 1, 2015. en Company op k of Saleen. On the Use the following information for Problems 2-8 through 2-11: In an arrempt to expand its operations, Palto Company acquires Salcen January 15. Palto pay cash in exchange for the common stock of care o cuisition, Saleen has the following balance sheet: Saleen Company Balance Sheet January 1, 2015 . . . . . . . . . .. $ 40,000 .. 100.000 Inventory ........ Land.......... 10,000 90,000 60,000 Liabilities and Equity Assets Accounts receivable .. $ 20,000 Current liabilities .... 50,000 Bonds payable ................. 40,000 Common stock ($1 par).... Buildings ............... 200,000 Paid.in capital in excess of par ..... Accumulated depreciation ..... (50,000) Retained earnings .. 60,000 Accumulated depreciation ..... (20,000) Total assets. ............... $300,000 Total liabilities and equity . . . . . . . An appraisal provides the following fair values for assets: Accounts receivable .......... Equipment ............ $300,000 Inventory ........ Land......... Buildings .......... Equipment... Copyright ......... $ 20,000 60,000 80,000 320,000 60,000 50,000

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