ON JANUARY 1,2017, JAY CORPORATION ACQUIRED ALL THE OUTSTANDING STOCK OF JOE COMPANY, BY ISSUING 9000 SHARES OF ITS $30 PAR VALUECOMMON STOCK.AT THE ACQUISITION DATE, THE STOCK WAS TRADING AT $50 PER SHARE.ADDITIONALLY.HIRAM PAID $10,000 TO SANDLER O'NEAL TO REPRESENTTHEM IN THE TRANSACTION AND $10,000 TO KPMG FOR ACCOUNTING SERVICES.AT JANUARY 1, 2017, JOE HAD RETAINED EARNINGS OF $230,000 AND TOTAL BOOK VALUE OF $360,000.YOUR ANANLYSIS OF JOE'S ASSETS ANDLIABILITIES REVEALED THAT ITS PROPERTY, PLANT AND EQUIPMENT WAS UNDERVALUED BY $60,000 AND HAS A REMAINING USEFUL LIFE OF 6 YEARS.JOEALSO HAS A TRADEMARK THAT YOU DETERMINED HAS A FAIR VALUE OF$30,000 WITH A TEN YEAR LIFE

REQUIRED:A.PREPARE THE JOURNAL ENTRY TO RECORD THE ABOVE PURCHASE, ASSUMING YOU DECIDE TO KEEP JOE AS A SEPARATE ENTITY.

B.DETERMINE THE AMOUNT OF THE EXCESS PURCHASE PRICE AND HOW THE EXCESS IS ALLOCATED

C. FOLLOWING ARE THE SEPARATE FINANCIAL STATEMENTS FOR JAY AND JOE AS OF DECEMBER 31,2017.

PREPARE A CONSOLIDATION WORKSHEET FOR THESE TWO COMPANIES AS OF DECEMBER 31,2017.