b326 Q3

Question 3 (10 marks) Panorama Corporation acquired 80% of Scann Corporation shares on January 1, 2019 for $1,400,000 cash, when Scann's stockholders equity was $1,250,000. On that date, the book value of Scann's assets and liabilities was equal to the fair value except for equipment that had a book value of $105,000 and fair value of $150,000 and had a remaining useful life of 5 years from January 1, 2019. Any other excess would be assigned to goodwill. The separate net income of Panorama Corporation and Scann Corporation for the year ended December 31, 2019 was $180,000 and $120,000 respectively. Required: 1. Calculate the Excess of Fair value over book value at January 1, 2019. 2. Calculate the amount of goodwill on the consolidated balance sheet at January 1, 2019. 3. Calculate the amount of equipment on the consolidated balance sheet at January 1, 2019. 4. Calculate the consolidated net income for the year ended December 31, 2019