Problem 2 On 1/1/20xI, Mt. Holly, Inc. paid $525,000 in cash to acquire 100% of the outstanding common stock of Laurelton Corporation. At the acquisition date, Laurelton Corporation prepared the following trial balance: In addition, all of Laurelton's assets and liabilities fair value equaled their book values on the acquisition date, except the following which had fair values (and remaining useful lives) as shown below: - Land - $102,000 - Buildings (with remaining useful life of 20 years) - $188,000, and - Machinery and equipment (remaining useful life of 8 years) $216,000 During 201, Laurelton reported net income of $96,000 while paying dividends of $12,000. Required A. Record the acquisition of Laurelton, assuming it was dissolved at acquisition, i.e., did not continue as an on-going business: 1. Mt. Holly acquires Laurelton for $525,000, as indicated in the given information above. 2. Rather than paying $525,000, Mt Holly acquires Laurelton for $500,000. 8. Separate from part A., above, assuming Laurelton was acquired and continued as a separate on-going business and Mi. Holley applies the equity method to account for their investment in Laurelton: 1. Record Mt. Holley's acquisition of Laurelton's common stock for $525,000. 2. Prepare a schedule showing the allocation of the purchase price to the net assets acquired, including periodic depreciation/amortizations of the related purchase price adjustments. 3. Determine the amount of goodwill recorded at acquisition, if any. 4. Prepare the journal entries related to preparing the consolidating worksheet at the acquisition date, 1/1/201, only. 5. A schedule showing the balance in Mt. Holly's "Investment in Laurelton account from the acquisition date to 12/31/201