On January 1, 2013, Hiram Corporation acquired all the outstanding stock of Terrier Company, by issuing 9,000 shares of its $30 par value common stock. At the acquisition date, the stock was trading at $50 per share. Additionally, Hiram paid $10,000 to Sandler O'Neal to represent them in the transaction and $10,000 to KPMG for accounting services.

At January 1, 2013, Terrier had retained earnings of $230,000 and total book value of $360,000. Your analysis of Terrier's assets and liabilities revealed that its property, plant and equipment was undervalued by $60,000 and has a remaining useful life of 6 years. Terrier has a trademark that you determined has a fair value of $30,000 with a ten year life,

Required: Prepare the journal entry to record the above purchase, if you decide to keep Terrier as a separate entity.

Determine the amount of the excess purchase and how the excess is allocated.