Pep Corporation acquired 100 percent of See Company stock on January 1, 2019 for $952.000 cash Following are trial balances of Pep Corporation and See Company as of December 31, 2019 CORPORATION Credit $ Cash Accounts Receivable Inventory Investment in See Corp. Buildings PEP Debit 364,000 294,000 473,000 1.151.500 SEE COMPANY Debit Credit 320,500 204,000 175,000 Land 790,000 481,000 382,000 37.000 48.000 273,000 70,000 360,000 225,000 233,000 110,100 16,800 32.100 117,600 40.000 Equipment Cost of Goods Sold Depreciation Expense, Building Depreciation Expense, Equipment Selling & Administrative Expense Dividends Dedared Accumulated Depreciation, Bldg Accumulated Depreciation, Equip Accounts Payable Bonds Payable Common Stock ($1 par) Additional Paid in Capital Retained Earnings (01/01/2015) Sales Income from See Corp. 100,800 160,500 165,800 120.000 222,000 192,000 110,000 500.000 600,000 1,416,000 774,000 927,000 239,500 4,988,500 175.000 291,000 537,000 4.988,500 $ $ 1,834,100 $ 1,834,100 Additional Information: 1. On January 1, 2019 the fair market value of See's assets equaled their book value with the exception of: Inventory-was overvalued by $6,000 (all of this inventory was sold during 2019). Building - was overvalued by $20,000 (remaining useful life was estimated to be 8 years). Land-was by undervalued $81,000. Equipment - was undervalued by $74,000 (remaining useful life was estimated to be 5 years). The new Goodwill from the acquisition was impaired by S14,600 at year-end. 2. Pep Corporation uses the full) equity method to account for its Investment in See Company. 3. The general ledger numbers given above (HINT: those in boldface) include the effects of the JOURNAL ENTRIES that were recorded by Pep at the acquisition date and during 2019 to account for its investment in See Company. These boldface figures should be used a check figures in your solution. Required: CLEARLY SHOW ALL OF YOUR WORK a. Analyze the investment in See accounts of the optione Determine the total differential theme amount out into the excess cost detalland new.goodwill components. CLEARLY LABEL YOUR DETAIL (10 POINTS) s Fair Value of Consideration given from Pep Company to see's Shareholders + Fair value of Ary Noncontrolling interest $ 953,000 $ 0 - $ 90,000 750,000 200.000 Total Value Book Value of See Company's Net Identifiable Assets Differential fanyl etable Excess if any) Ovadued cento Coco Duendued building 30.000 Tad wednou do 31,000 Egiopment inderudurd. +4,000 131.000 New Goodwilofanyi o coss Recreate the 4 JOURNAL ENTRIES recorded by Pep with regard to investment in See Company atuary 1, 2018 during 2019. BE SURE TO SHOW YOUR WORK FOR THE NUMBERS INCLUDED IN THE AMORTIZATION OF DXCESS VALUE JOURNAL ENTRY (10 POINTS) cou a ou investment in see to stock 952,000 sepap bulda 500 - Cash 952,000 peopop cao 140 o Investment in See corp. 260,400 income from She coup 260.700 Cosh/Divident Recruable M0.000 0.000 c. Using your information from above, calculate the 12/31/19 balances for Pep Company's investment in See and in from See accounts. Use the accounts provided below. 14 POINTS Pep Company's General Leder Income from See Prepare the MOURED COOLDATION WOR-ETENTE INGLAYSO L POINTS