On January 1, 2016, Rand Corp. issued shares of its common stock to acquire all of the outstanding common stock of Spaulding Inc. Spauldings book value was only $140,000 at the time, but Rand issued 12,000 shares having a par value of $1 per share and a fair value of $20 per share. Rand was willing to convey these shares because it felt that buildings (ten-year life) were undervalued on Spauldings records by $60,000 while equipment (five-year life) was undervalued by $25,000. Any consideration transferred over fair value of identified net assets acquired is assigned to goodwill.

Required:

- Prepare the journal entry at the time of the acquisition, showing all work.

- Prepare the consolidation entries for this business combination, showing all work.

- Prepare the consolidation worksheet for this business combination in good form.

Advanced Accounting - Fall 2019 On January 1, 2016, Rand Corp. issued shares of common stock of Spaulding Inc. Spaulding 12,000 shares having a par value of $i per convey these shares because it felt that buildings by $60,000 while equipment (five-year life) was un over fair value of identified met assets acquired is assigned to goodwill. Following are the individual financial recor 2019. sued shares of its common stock to acquire all of the outstanding 's me. Spaulding's book value was only $140.000 at the time, but Rand issued e of Sl per share and a fair value of $20 per share. Rand was willing to Tell that buildings (ten-year life) were undervalued on Spauldings records (rive-year life) was undervalued by $25,000. Any consideration transferred cial records for these two companies for the year ended December 31, Revenues Expenses Equity in subsidiary earnings Net income Rand Corp. $ 372,000 (264,000) 25.000 $ 133,000 Spaulding Inc. $108,000 (72,000) S 36,000 Retained earnings, January 1, 2019 Net income Dividends paid Retained earnings, December 31, 2019 $ 765.000 133.000 (84.000) $ 814,000 $102,000 36,000 (24,000) S114.000 $ 22,000 Current assets Investment in Spaulding Inc. Buildings (net) Equipment (net) Total assets $ 150,000 242,000 525,000 389,250 $1,306,250 85,000 129.000 $236.000 Liabilities Common stock Additional paid-in capital Retained earnings, December 31, 2019 Total liabilities and stockholders' equity $ 82,250 360,000 50,000 814.000 $1,306,250 $ 50,000 72.000 0 114.000 $236.000 Required: Prepare the journal entry at the time of the acquisition, showing all work are the consolidation entries for this business combination, showing all work solidation worksheet for this business combination in good form. be brought to class on Thursday at the time of the exam. Excel worksheets are to Printed solutions are to be brought to class be up loaded to the drop box. Advanced Accounting - Fall 2019 On January 1, 2016, Rand Corp. issued shares of common stock of Spaulding Inc. Spaulding 12,000 shares having a par value of $i per convey these shares because it felt that buildings by $60,000 while equipment (five-year life) was un over fair value of identified met assets acquired is assigned to goodwill. Following are the individual financial recor 2019. sued shares of its common stock to acquire all of the outstanding 's me. Spaulding's book value was only $140.000 at the time, but Rand issued e of Sl per share and a fair value of $20 per share. Rand was willing to Tell that buildings (ten-year life) were undervalued on Spauldings records (rive-year life) was undervalued by $25,000. Any consideration transferred cial records for these two companies for the year ended December 31, Revenues Expenses Equity in subsidiary earnings Net income Rand Corp. $ 372,000 (264,000) 25.000 $ 133,000 Spaulding Inc. $108,000 (72,000) S 36,000 Retained earnings, January 1, 2019 Net income Dividends paid Retained earnings, December 31, 2019 $ 765.000 133.000 (84.000) $ 814,000 $102,000 36,000 (24,000) S114.000 $ 22,000 Current assets Investment in Spaulding Inc. Buildings (net) Equipment (net) Total assets $ 150,000 242,000 525,000 389,250 $1,306,250 85,000 129.000 $236.000 Liabilities Common stock Additional paid-in capital Retained earnings, December 31, 2019 Total liabilities and stockholders' equity $ 82,250 360,000 50,000 814.000 $1,306,250 $ 50,000 72.000 0 114.000 $236.000 Required: Prepare the journal entry at the time of the acquisition, showing all work are the consolidation entries for this business combination, showing all work solidation worksheet for this business combination in good form. be brought to class on Thursday at the time of the exam. Excel worksheets are to Printed solutions are to be brought to class be up loaded to the drop box