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On January 1, 20X9, Parker acquired 90% of Sanders for $200,000 plus $15,000 in acquisition costs. On the date of acquisition, Sanders had the following

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On January 1, 20X9, Parker acquired 90% of Sanders for $200,000 plus $15,000 in acquisition costs. On the date of acquisition, Sanders had the following balance sheet Sanders Company Balance Sheet January 1, 20x9 Assets Liabilities and Equity Accounts Receivable $40,000 Current Liabilities $110,000 100,000 100,000 Inventory 160,000 Bonds Payable 60,000 Common Stock, $1 par 150,000 Paid-in Capital (20,000) Retained Earnings 50,000 (10,000) 30,000 $460,000 Total Liabilities and Equity Land Buildings Accumulated Depreciation Equipment Accumulated Depreciation Goodwill Total Assets 50,000 100,000 $460000 An appraisal indicates that the following items have fair values that differed from their book values: Accounts Receivable $30,000 180,000 80,000 100,000 Inventory Land Buildings Equipment Copyright Bonds Payable 30,000 70,000 105,000 Immediately after the purchase, Parker had the following balance sheet: Parker Company Balance Sheet January 1, 20x9 Liabilities and Equity Assets $120,000 190,000 100,000 40,000 400,000 Cash $50,000 Current Liabilities 60,000 Bonds Payable 100,000 Common Stock, $1 par 200,000 Paid-in Capital 200,000 Retained Earnings 240,000 (50,000) 90,000 (40,000) 100,000 $950,000 Total Liabilities and Equity Accounts Receivable Inventory Investment in Sanders Land Buildings Accumulated Depreciation Equipment Accumulated Depreciation Goodwill to alsb 950.000 Total Assets INSTRUCTIONS (1) Record the investment in Sanders. (2) Prepare a value analysis schedule. (3) Prepare a determination and distribution of excess schedule. (4) Prepare all required elimination entries for the January 1,20X9 consolidated worksheet in general journal format. (5) Complete a consolidated worksheet for Parker and its subsidiary Sanders as of January 1, 20X9. (6) Prepare a consolidated balance sheet in good form as of January 1, 20x9

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