On January 1, 2021, Paige Corporation purchased 100% of the outstanding stock of HomePage Company for

$250,000 cash. The balances listed on the Worksheet are the balances immediately after the purchase.

The fair market value of HomePage assets and liabilities on January 1, 2021 are as follows:

Current Assets $40,000

Land $50,000

Buildings $85,000

Equipment $50,000

Current Liabilities $(60,000)

Step 1 - Prepare the Acquisition Date Fair-Value Allocation Schedule

	Balance Sheet- Janaury 1, 2021
	Paige	Homepage
Current Assets	80,000	40,000
Investment - Homepage	250,000
Land	50,000	20,000
Building	125,000	80,000
Equipment	140,000	60,000
Goodwill
Total Assets	645,000	200,000
Current Liabilities	(75,000)	(60,000)
Paige - Capital Stock	(80,000)
Paige - Addl Paid in Cap	(60,000)
Paige - Retained Earnings	(430,000)
Homepage - Cap Stk		(50,000)
Homepage - Addl PIC		(20,000)
Homepage - RE		(70,000)
Total Liabilities & OE	(645,000)	(200,000)