Question
Jernigan Corp. had the following account balances at 12/1/20: Receivables Inventory Land Buildings $ 96,000 240,000 720,000 600,000 Liabilities 480,000 Common stock 120,000 Additional
Jernigan Corp. had the following account balances at 12/1/20: Receivables Inventory Land Buildings $ 96,000 240,000 720,000 600,000 Liabilities 480,000 Common stock 120,000 Additional paid-in capital 120,000 Retained earnings, 12/1/20 840,000 Revenues Expenses 360,000 264,000 Several of Jernigan's accounts have fair values that differ from book value. The fair values are: Land - $480,000; Building - $720,000; Inventory $336,000; and Liabilities - $396,000. Inglewood Inc. acquired all of the outstanding common shares of Jernigan by issuing 20,000 shares of common stock having a $6 par value per share, but a $66 fair value per share. Stock issuance costs amounted to $12,000. Required: Prepare a fair value allocation and goodwill schedule at the date of the acquisition.
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