determine FV of net assets and goodwill from the given information. also prepare a determination and distribution of excess schedule for the investment.

DU LUNSUNUCU Udde sileet. Problem 3-4 (LO 3) Cost method, consolidated statements. The trial balances of Charles Company and its subsidiary, Lehto, Inc., are as follows on December 31, 2017: Charles Lehto 130,000 440,000 (70,000) 590,000 1,805,000 (405,000) 400,000 1900,000) (220,000) (225,000) Current Assets .... Depreciable Fixed Assets ........ Accumulated Depreciation ........ Investment in Lehto, Inc.................... ... Liabilities .................................... Common Stock ($1 par) .................. Common Stock ($5 par) Paid-In Capital in Excess of Par. Retained Earnings, January 1, 2017..... Revenues....... Expenses ...... Dividends Declared......... (1,040,000) (230,000) (460,000) 450,000 10,000 (50,000) (15,000) (170,000) (210,000) 170,000 Totals On January 1, 2015, Charles Company exchanges 20,000 shares of its common stock, with a fair value of $20 per share, for all the outstanding stock of Lehto, Inc. Fixed assets with a 10-year life are understated by $50,000. Any excess of cost over book value is attributed to goodwill. The stockholders' equity of Lehto, Inc., on the purchase date is as follows: Common stock ($5 par)....................... Paid.in capital in excess of par ........... . Retained earnings ......... Total equity $ 50,000 15,000 135,000 $200,000