corporate accounting

3. Goodwill calculation Consideration : Asset Goodwill Equity Adjustment 4. Equity adjustment calculation Adjusted Equity Requirement Share of Total Cooperative patronage Patronage during last five years MEMBER Beginning Equity INO 300 120 B 1000 3000 3500 7500 and unrealized profit for holding company 3. On January 1, 2011, Pat Corporation paid $400,000 for purchase of Sad Corporation, when Sad's stockholders' equity consisted of $300,000 capital stock and $200,000 retained earnings. Book values were equal to fair values of Sad's assets and liabilities, except for a building and land. The building had a book value of $80,000, a fair value of $120,000, and a remaining useful life of eight years. The land had a book value of $50,000 and a fair value of $150,000. Required: Calculate goodwill at the date of purchase of Sad Corporation (15) 4. The cooperative operates its plan according to a five-year base period. Suppose the board of directors has determined that the cooperative must have an additional $300 of equity capital to meet its financial requirements during the next year. The balance of each member's equity account is shown in column 2 of the table. Patronage attributable to each member during the five-year base period is shown in column 3. a A MEMBER Beginning Equity 1000 3000 3500 7500 B Patronage during last five years 180 300 120 600 Required: Calculate the adjustment to be made in each member's equity account