Part 1: What is the amount of Goodwill inherent in this acquisition

Part 2: Prepare the FV/BV allocation schedule

Part 3: Using the the FV/BV allocation schedule, prepare consolidating entries for company S and A

P issues 20,000 shares in exchange for 100% of S's Common equity. The FV of P's equity is $35/sh. The stock has a par value of $1/sh. The company incurs $25,000 is stock issuance and registration costs. Prior to the purchase of S's shares P and S's balance sheets are as follows: DR (CR) S DR (CR) PreAcquisition Balance Sheets P Cash 60,000 Receivables 150,000 Patented Technology 400,000 Equipment (net) 840,000 Goodwill 50,000 Totals 1,500,000 50,000 65,000 115,000 60,000 10,000 300,000 Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Totals (110,000) (370,000) (50,000) (110,000) (860,000) (1,500,000) (40,000) (50,000) (50,000) (60,000) (100,000) (300,000) An examinatoin of S's balance sheet valuations reveals the following: FV Acquisition Method-Step 2 On-The-Go BV Cash 40,000 Receivables 75,000 Patented Technology 150,000 Equipment (net) 100,000 Goodwill In-Process R&D Totals 365,000 40,000 80,000 300,000 200,000 150,000 770,000 Accounts payable Notes payable (50,000) (75,000) (50,000) (50,000)