Consolidation Problem

On January 1 2020, Starbucks acquired 100% of Dunkins outstanding common stock for $1,000,000 in cash. As of January 1 2020, the following fair values where determined.

• Dunkins Buildings had a FV in excess of BV of $150,000

• Dunkins Equipment had a FV in excess of BV of $40,000

• Dunkin had an unrecorded patent with a FMV of $10,000

For all other Dunkin Accounts as of Jan 1, 2020, all other GAAP book values equaled fair values.

Here is the balance sheet information on the date of acquisition (Jan 1 2020) All balances are normal balances

Jan 1 2020	Starbucks	Dunkin Donuts
Cash	100,000	100,000
A/R	300,000	200,000
Investment in Dunkin	842,000	N/A
Equipment	258,000	200,000
Building	900,000	400,000
Total Assets	2,600,000	900,000
Accounts Payable	(200,000)	(50,000)
Loans	(400,000)	(150,000)
Total Liabilities	600,000	200,000
Common Stock	100,000	100,000
APIC	300,000	200,000
Retained Earnings	1,600,000	400,000
Total Liabilities and Equity	2,600,000	900,000

1. Prepare a schedule of the fair value allocation schedule, including goodwill, if any, and including fair value excess over book value depreciation or amortization schedule, if any.