Pep Carporation a cquired 100 percent af See Company stack on January 1, 2019 far $718.00 cash. Following are trial ba lances of Pep Corporation and See Company as of December 31. 2019 PEP CORPORATION SEE COMPANY Debit Credit Debit Credit Cash 434,200 294,000 265,400 Accounts Receivable 204,000 116,000 473,000 Inventory Investment in See Carp. Land 1,001,650 790,000 625,000 225000 30,000 Buildings Equipment 481000 382,000 51.000 48.000 233,000 Cost of Goods Sold 110,100 Depreciation Expeme, Building Depreciation Expense, Equipment Seling & Admini strative Expemse 16800 23,100 9,000 209,000 s0,000 Dividends Declared 40,000 Accumulated Depreciation, Bldg Accumulated Depreciation, Equip Accounts Payable Bonds Payable 204,000 144,000 118,000 500,000 600,000 1,262,000 769,000 919,000 322, 850 4,838 850 84,000 138,600 165 800 120,000 Common Stack 146,000 152,000 289,000 587,000 Additional Paid iIn Capital Retained Earnings (01/01/2019) Sales Income from See Corp. 4838850 $ 1682 A00 1682,400 S Additional Information: 1. On lanuary 1, 2019 the fair market value of See's assets equaled their baok value with the exeption of: Inventory -was undervalued by $18,000 (all of this inventory was sald during 2019) Land- was by avervalued $7,000 Building - was undervalued by $42,800 fremaining useful life was estimated to be 8 years) Equipment - was avervalued by S8,000 (remaining useful life was estimated to be Syears) The new Goodwill from the acquisition was impaired by $3,400 at year-end. 2. Pep Corparation uses the (full) equity method to account for its Investment in See Cam pany. 3. The general ledger numbers given above (HINT: thase in boldface) include the effects of the JOURNAL ENTRIES that were recarded by Pepat the acquisition date and during 2019 to account for its investment in See Company. The se boldface figures should be used a check figures in your solution Bequired: (CLEARLY SHOW ALL OF YOUR WORK). a. Analyze the inves tment in See account as of the acquisition date Determine the total "differential" and then break thia amaunt out inte the exes cost detail andinewlgeodwill campanents CEARLY LABELYOUR DETAIL (10 POINTS) Fair Value of Comideration given fram Pep Campany to See's Shareholders: Fair Value of Any Nancantralling Interest Total Fair Value Book Value of See Company's Net identifable Assets Differential fany) Identifiable Excess (if any New Goadwill (if any) Pep Carporation a cquired 100 percent af See Company stack on January 1, 2019 far $718.00 cash. Following are trial ba lances of Pep Corporation and See Company as of December 31. 2019 PEP CORPORATION SEE COMPANY Debit Credit Debit Credit Cash 434,200 294,000 265,400 Accounts Receivable 204,000 116,000 473,000 Inventory Investment in See Carp. Land 1,001,650 790,000 625,000 225000 30,000 Buildings Equipment 481000 382,000 51.000 48.000 233,000 Cost of Goods Sold 110,100 Depreciation Expeme, Building Depreciation Expense, Equipment Seling & Admini strative Expemse 16800 23,100 9,000 209,000 s0,000 Dividends Declared 40,000 Accumulated Depreciation, Bldg Accumulated Depreciation, Equip Accounts Payable Bonds Payable 204,000 144,000 118,000 500,000 600,000 1,262,000 769,000 919,000 322, 850 4,838 850 84,000 138,600 165 800 120,000 Common Stack 146,000 152,000 289,000 587,000 Additional Paid iIn Capital Retained Earnings (01/01/2019) Sales Income from See Corp. 4838850 $ 1682 A00 1682,400 S Additional Information: 1. On lanuary 1, 2019 the fair market value of See's assets equaled their baok value with the exeption of: Inventory -was undervalued by $18,000 (all of this inventory was sald during 2019) Land- was by avervalued $7,000 Building - was undervalued by $42,800 fremaining useful life was estimated to be 8 years) Equipment - was avervalued by S8,000 (remaining useful life was estimated to be Syears) The new Goodwill from the acquisition was impaired by $3,400 at year-end. 2. Pep Corparation uses the (full) equity method to account for its Investment in See Cam pany. 3. The general ledger numbers given above (HINT: thase in boldface) include the effects of the JOURNAL ENTRIES that were recarded by Pepat the acquisition date and during 2019 to account for its investment in See Company. The se boldface figures should be used a check figures in your solution Bequired: (CLEARLY SHOW ALL OF YOUR WORK). a. Analyze the inves tment in See account as of the acquisition date Determine the total "differential" and then break thia amaunt out inte the exes cost detail andinewlgeodwill campanents CEARLY LABELYOUR DETAIL (10 POINTS) Fair Value of Comideration given fram Pep Campany to See's Shareholders: Fair Value of Any Nancantralling Interest Total Fair Value Book Value of See Company's Net identifable Assets Differential fany) Identifiable Excess (if any New Goadwill (if any)