On January 1, yearl, Mustang Company purchased all of the stock of MSU Company for $420,000. MSU's balance sheet at the date of purchase follows: Assets Current assets .............. Buildings (net) .............. Equipment (net) ................. Total assets......... $165,000 140,000 100,000 $405,000 Liabilities and Equity Liabilities ...... Common stock ($10 par).......... Retained earnings .... ......... Total liabilities and equity...... $ 65,000 100,000 240,000 $405,000 MSU's equipment was understated by $50,000 and had a 5-year remaining life. All other book values approximate fair values. Any remaining excess is attributed to goodwill. $500 10.000 A. Determine the allocation of the cost B. Prepare Mustang's entry to record its acquisition C. Prepare worksheet entries A and E for the end of 1. year 1 and 2. year 2