GAAP

Wood'n Wares, Inc., purchased all the outstanding stock of Pail, Inc., for $1,090,000. Wood'n Wares also paid $30,000 in direct acquisition costs. Just before the investment, the two companies had the following balance sheets: Wood'n Assets Wares, Inc. Pail, Inc. Accounts Receivable............... $1,000,000 $500,000 Inventory...... 660,000 200,000 Property, plant, and equipment (net) 1.440,000 610,000 Total assets......... $3.100.000 $1.310.000 Liabilities and Equity Current liabilities. Bonds Payable....................... Common Stock ($10 par)......... Paid-in capital in excess of par.... Retained earnings. Total liabilities and equity.......... $950,000 490,000 470,000 655,000 535,000 S3.100.000 $290,000 170,000 400,000 330,000 120,000 $1.310.000 Appraisals for the assets of Pail, Inc., indicate that fair values differ from recorded book values for the inventory and for the depreciable fixed assets, which have fair values of $250,000 and $700,000, respectively. 1. Prepare the entries to record the purchase of the Pail, Inc., common stock and payment of acquisition costs. 2. Prepare the value analysis and the determination and distribution of excess schedule for the investment in Pail, Inc. 3. Prepare the elimination entries that would be on a consolidated worksheet