Palm company aquired 100per of storm companys voting stock on Jan 120xx.by issuing 10,000 shares of its 10 par value common sotck (fv of 14 per share). as of that date storm had STOCKHOLDERS EQUITY TOTALING 105000. Land shown on record was undervalued by 10,000. Equipment (WITH 5YR REMAIN LIFE) was undervalued by 5000. A secret formula developed by storm was appraised at 20,000 with a estimated 20yr life. computation of good will(if any)

Fair value of consideration (10000 * 14) = ?

Book value of S comp. = ?

Allocated to land = ?

Allocated to equipment = ?

Allocated to secret formula =?

Good will = ?

Accounts	Palm Co.	Storm Co.
Income Statement
Revenues	(485,000)	(190,000)
Cost of goods sold	160,000	70,000
Depreciation expense	130,000	52,000
Amortization expense
Equity in subsidiary earnings	(66,000)
Net Income	(261,000)	(68,000)
Statement of Retained Earnings
Retained earnings 1/1	(659,000)	(98,000)
Net income (above)	(261,000)	(68,000)
Dividends paid	175,500	40,000
Retained earnings 12/31	(744,500)	(126,000)
Balance Sheet
Current assets	268,000	75,000
Investment in Storm Co.	216,000
Land	427,500	58,000
Buildings and equipment (net)	713,000	161,000
Formula
Total assets	1,624,500	294,000
Current liabilities	(110,000)	(19,000)
Long-term liabilities	(80,000)	(84,000)
Common stock	(600,000)	(60,000)
Additional paid-in capital	(90,000)	(5,000)
Retained earnings 12/31	(744,500)	(126,000)
Total Liabilities and Equity	(1,624,500)	(294,000)
Parentheses indicate a credit
balance