Charlotte Inc. Purchased all the stock of Shelby Inc. on Dec. 31, 2-15. Charlotte paid $503,750 cash. Shelby will continue operate and become a subsidiary for Charlotte. The following table shows the different between the fair values and the book values of Shelbys assets and liabilities.

	Book Values		Fair Values
Computer software	$	49,800	$	112,550
Equipment		63,500		44,700
Client contracts		0		116,200
In-process research and development		0		21,000
Notes payable		(69,000)		(78,400)

At December 31, 2015, the following financial information is available for consolidation:

	Charlotte			Shelby
Cash	$	16,100		$	13,900
Receivables		163,500			40,500
Inventory		164,000			100,500
Investment in Shelby		503,750			0
Computer software		259,000			49,800
Buildings (net)		506,500			149,800
Equipment (net)		398,000			63,500
Client contracts		0			0
Goodwill		0			0
Total assets	$	2,010,850		$	418,000
Accounts payable	$	(90,600)		$	(53,000)
Notes payable		(521,250)			(69,000)
Common stock		(380,000)			(100,000)
Additional paid-in capital		(170,000)			(25,000)
Retained earnings		(849,000)			(171,000)
Total liabilities and equities	$	(2,010,850)		$	(418,000)

1. What is the consideration transferred at fair value? at book value?

2.What is the excess fair value over book value?

3. Allocation of excess fair value to specific assets and liabilites:

to computer software

to equipment

to client contracts

to in-process research and development

to notes payable

4..What is goodwill, if any?

5.. Complete Charlotte Comapny & Shelby consolidation balance sheet for Dec. 31, 2015