mroblem 3-7 (LO 6) Intraperiod purchase. 80% interest, worksheet, statements. Teter Corporation purchases 80% of the outstanding stock of Super Company for $275,000 on July 1, 2015. Super Company has the following stockholders' equity on July 1, 2015: Common stock ($5 par)....... Retained earnings, July 1, 2015........ Total equity $150,000 50,000 $200,000 The fair values of Super's assets and liabilities agree with the book values, except for the equipment and the building. The equipment is undervalued by $10,000 and is thought to have a 5-year life; the building is undervalued by $50,000 and is thought to have a 20-year life. The remaining excess of cost over book value is attributable to goodwill. Jeter Corporation uses the simple equity method to record its investments. Since the purchase date, both firms have operated separately, and no intercompany transac- tions have occurred. Super Company closes its books on the date of acquisition. Pars / COMBINED CORPORATE ENTITIES AND CONSOLIDATO The separate trial balances of the firms on December 31, 2015, are as follows: Jeter Corporation 296,600 160,000 225,000 (100,000) 450,000 (115,000) 284,600 (480,000) (400,000) Super Company 91,000 90,000 135,000 (50,000 150,000 (60,000) (150,000) Cash ..... Land.. Building ...... Accumulated Depreciation-Building..... Equipment Accumulated Depreciation Equipment... Investment in Super Company ........... Liabilities Common Stock ($100 par)..... Common Stock ($5 par) Paid In Capital in Excess of Par Retained Earnings, January 1, 2015..... Retained Earnings, July 1, 2015. ..... Sales ....... Cost of Goods Sold ........... Other Expenses ...... Subsidiary income......... Dividends Declared........ Totals .............. (150,000 (40,000) (251,600) (460,000) 220,000 210,000 19,600) 10,000 (50,000 160,000 30,000 24,000 1. Prepare a value analysis and a determination and distribution of excess schedule for the investment. 2. Prepare the 2015 consolidated worksheet. Include columns for the eliminations and adjust ments, the consolidated income statement, the NCI, the controlling retained earnings, and the consolidated balance sheet. Prepare supporting income distribution schedules as well. 3. Prepare the 2015 consolidated statements, including the income statement, retained carn ings statement, and balance sheet. mroblem 3-7 (LO 6) Intraperiod purchase. 80% interest, worksheet, statements. Teter Corporation purchases 80% of the outstanding stock of Super Company for $275,000 on July 1, 2015. Super Company has the following stockholders' equity on July 1, 2015: Common stock ($5 par)....... Retained earnings, July 1, 2015........ Total equity $150,000 50,000 $200,000 The fair values of Super's assets and liabilities agree with the book values, except for the equipment and the building. The equipment is undervalued by $10,000 and is thought to have a 5-year life; the building is undervalued by $50,000 and is thought to have a 20-year life. The remaining excess of cost over book value is attributable to goodwill. Jeter Corporation uses the simple equity method to record its investments. Since the purchase date, both firms have operated separately, and no intercompany transac- tions have occurred. Super Company closes its books on the date of acquisition. Pars / COMBINED CORPORATE ENTITIES AND CONSOLIDATO The separate trial balances of the firms on December 31, 2015, are as follows: Jeter Corporation 296,600 160,000 225,000 (100,000) 450,000 (115,000) 284,600 (480,000) (400,000) Super Company 91,000 90,000 135,000 (50,000 150,000 (60,000) (150,000) Cash ..... Land.. Building ...... Accumulated Depreciation-Building..... Equipment Accumulated Depreciation Equipment... Investment in Super Company ........... Liabilities Common Stock ($100 par)..... Common Stock ($5 par) Paid In Capital in Excess of Par Retained Earnings, January 1, 2015..... Retained Earnings, July 1, 2015. ..... Sales ....... Cost of Goods Sold ........... Other Expenses ...... Subsidiary income......... Dividends Declared........ Totals .............. (150,000 (40,000) (251,600) (460,000) 220,000 210,000 19,600) 10,000 (50,000 160,000 30,000 24,000 1. Prepare a value analysis and a determination and distribution of excess schedule for the investment. 2. Prepare the 2015 consolidated worksheet. Include columns for the eliminations and adjust ments, the consolidated income statement, the NCI, the controlling retained earnings, and the consolidated balance sheet. Prepare supporting income distribution schedules as well. 3. Prepare the 2015 consolidated statements, including the income statement, retained carn ings statement, and balance sheet