On January 1, 2017, Aiello Company purchased 100% of the common stock Uline Industries for $450,000. On that date, Uline had common stock of $90,000 and retained earnings of $280,000. Equipment and land were each undervalued by $25,000 on Ulines books. There was a $10,000 overvaluation of Bonds Payable, as well a $20,000 undervaluation of inventory.

1)What is the amount of goodwill recorded in connection with this combination?

2) The consolidation entries, [A] entries, necessary for a date of acquisition balance sheet include all of the following except: A.

Equipment debit, $25,000

B.

Inventory debit, $20,000

C.

Land debit, $25,000

D.

Bonds Payable credit, $10,000

3) The consolidation entries, [E] entries, necessary for a date of acquisition balance sheet include all of the following except:

A.

Common Stock debit, $90,000

B.

Retained Earnings credit, $280,000

C.

Equity Investment credit, $450,000

D.

No debits or credits to goodwill