issued shares of its common stock to acquire all of the On January 1, 20, Rand Corp. outstanding common stock of Spaulding Ine. Spaulding's book value time, but Rand issued 12,000 shares having a par value of S per share. Rand was willing to convey these shares because it felt tht bui were undervalued on Spaulding's records by $60,000 while undervalued by $25,000. Any consideration transferred acquired is assigned to goodwill. was only S140.000 at the l per share and a fair value of $20 ldings (ten-year life) over fair value of identified net assets Following are the individual financial records for these two December 31, 2014. companies for the year ended December 31. 2014. Rand Spaulding Cop. Inc, S 372.000 S108,000 Revenues Expenses (264,000) (72.000) Equity in subsidiary eamings Net income 133,000 6.002 Retained earmings January 1, 2014 Net income (above) Dividends paid Retained earningsDecember 31, 2014 S 765,000 S102,000 35,000 133,000 5 81400 114000 Current assets lavestment in Spaulding Inc Baildings (net) Equipment (oet) Total assets 150,000 22,000 242,000 525,000 83,000 $126.00 50,000 306239 Common stock Additional paid-in capital 82,20 360,000 0,000 earnings, December 31, 2014 (above) 14.000 Total liabilities and stockholders equity a. analyze the purchase price allocation as of the acquisition date (20 points) entry as of the acquisition date, Spaulding remains as a separate entity b. give the (20 points) c. can we use a T" account to explain the ending balance of $242,000 in the Investment In Spaulding Inc." account as of December 31, 2014? Why or why not? (10 points) d. give the consolidation entry as of December 31, 2014 (20 points) issued shares of its common stock to acquire all of the On January 1, 20, Rand Corp. outstanding common stock of Spaulding Ine. Spaulding's book value time, but Rand issued 12,000 shares having a par value of S per share. Rand was willing to convey these shares because it felt tht bui were undervalued on Spaulding's records by $60,000 while undervalued by $25,000. Any consideration transferred acquired is assigned to goodwill. was only S140.000 at the l per share and a fair value of $20 ldings (ten-year life) over fair value of identified net assets Following are the individual financial records for these two December 31, 2014. companies for the year ended December 31. 2014. Rand Spaulding Cop. Inc, S 372.000 S108,000 Revenues Expenses (264,000) (72.000) Equity in subsidiary eamings Net income 133,000 6.002 Retained earmings January 1, 2014 Net income (above) Dividends paid Retained earningsDecember 31, 2014 S 765,000 S102,000 35,000 133,000 5 81400 114000 Current assets lavestment in Spaulding Inc Baildings (net) Equipment (oet) Total assets 150,000 22,000 242,000 525,000 83,000 $126.00 50,000 306239 Common stock Additional paid-in capital 82,20 360,000 0,000 earnings, December 31, 2014 (above) 14.000 Total liabilities and stockholders equity a. analyze the purchase price allocation as of the acquisition date (20 points) entry as of the acquisition date, Spaulding remains as a separate entity b. give the (20 points) c. can we use a T" account to explain the ending balance of $242,000 in the Investment In Spaulding Inc." account as of December 31, 2014? Why or why not? (10 points) d. give the consolidation entry as of December 31, 2014 (20 points)