PROBLEM (30 points) Instructions: Prepare Investment Analysis and consolidation entries (SAIDEP) for the following business combination. Complete worksheet entries SAIDEP directly on the exam paper. Do not post to the worksheet or calculate consolidated totals. It will not be considered in grading. Partial credit is available. On January 1, 2016, Up Corp issued 24,000 shares of its commons stock (par value $i; market value $20) for all the outstanding shares of Down Corp. This combination was accounted for using the acquisition method and Down will remain as a wholly owned subsidiary of Up. At acquisition date, the book value of net assets of Down was $280,000. Up was willing to pay in excess of book value to acquire Down because the fair value of certain of Down's assets exceeded their book value. Specifically, Down's buildings (10 year life) had a fair value $100,000 greater than book value at date of acquisition and Down's equipment ( 5 year life) had a fair value $50,000 greater than book value at date of acquisition. The following are the individual financial records for these two companies for the year ended December 31, 2019. Credit balances are in parenthesis (same as textbook). At that date Down owed Up $18,000. Those amounts were included in the Current Assets of Up and the Liabilities of Down. Up Down Revenues 744,000) (216,000) Expenses 528,000 144,000 Equity in subsidiary earnings (52,000) (1,536,000) Net Income (268,000) (72,000) Retained earnings, January 1, 2019 (204,000) Net Income (268,000) (72,000) Dividends paid 168,000 40,00 Up Down Revenues 744,000) (216,000) Expenses 528,000 144,000 Equity in subsidiary earnings (52,000) Net Income (268,000) (72,000) Retained earnings, January 1, 2019 (1,536,000) (204,000) Net Income (268,000) (72,000) Dividends paid 168,000 48,000 Retained earnings, December 31, 2019 (1,636,000) (228,000) Current assets 310,000 44,000 Investment in Down 492,000 0 Buildings (net) 1,050,000 170,000 Equipment (net) 778,500 258,000 Total Assets 2,630,500 472,000 Liabilities (174,500) (100,000) Common Stock (720,000) (144,000) Additional Paid in Capital (100,000) 0 Retained Earnings, December 31, 2019 (1,636,000) (228,000) Total Liabilities and Stockholders Equity (2,630,500) (472,000) Investment Analysis (10 points). Include FVCT, BVNAA, fair value adjustments, annual excess amortization, accumulated excess amortization and unamortized fair value adjustment. Computerwowilliam. If you leave any of Revenues 744,000) (216,000) Expenses 528,000 144,000 Equity in subsidiary earnings (52,000) Net Income (268,000) (72,000) Retained earnings, January 1, 2019 (1,536,000) (204,000) Net Income (268,000) (72,000) Dividends paid 168,000 48,000 Retained earnings, December 31, 2019 (1,636,000) (228,000) Current assets 310,000 44,000 Investment in Down 492,000 0 Buildings (net) 1,050,000 170,000 Equipment (net) 778,500 258,000 Total Assets 2,630,500 472,000 0 Liabilities (174,500) (100,000) Common Stock (720,000) (144,000) Additional Paid in Capital (100,000) Retained Earnings, December 31, 2019 (1,636,000) (228,000) Total Liabilities and Stockholders Equity (2,630,500) (472,000) Investment Analysis (10 points). Include FVCT, BVNAA, fair value adjustments, annual excess amortization, accumulated excess amortization and unamortized fair value adjustment. Compute goodwill, if any. If you leave any of these out, you will lose points. PROBLEM (30 points) Instructions: Prepare Investment Analysis and consolidation entries (SAIDEP) for the following business combination. Complete worksheet entries SAIDEP directly on the exam paper. Do not post to the worksheet or calculate consolidated totals. It will not be considered in grading. Partial credit is available. On January 1, 2016, Up Corp issued 24,000 shares of its commons stock (par value $i; market value $20) for all the outstanding shares of Down Corp. This combination was accounted for using the acquisition method and Down will remain as a wholly owned subsidiary of Up. At acquisition date, the book value of net assets of Down was $280,000. Up was willing to pay in excess of book value to acquire Down because the fair value of certain of Down's assets exceeded their book value. Specifically, Down's buildings (10 year life) had a fair value $100,000 greater than book value at date of acquisition and Down's equipment ( 5 year life) had a fair value $50,000 greater than book value at date of acquisition. The following are the individual financial records for these two companies for the year ended December 31, 2019. Credit balances are in parenthesis (same as textbook). At that date Down owed Up $18,000. Those amounts were included in the Current Assets of Up and the Liabilities of Down. Up Down Revenues 744,000) (216,000) Expenses 528,000 144,000 Equity in subsidiary earnings (52,000) (1,536,000) Net Income (268,000) (72,000) Retained earnings, January 1, 2019 (204,000) Net Income (268,000) (72,000) Dividends paid 168,000 40,00 Revenues 744,000) (216,000) Expenses 528,000 144,000 Equity in subsidiary earnings (52,000) Net Income (268,000) (72,000) Retained earnings, January 1, 2019 (1,536,000) (204,000) Net Income (268,000) (72,000) Dividends paid 168,000 48,000 Retained earnings, December 31, 2019 (1,636,000) (228,000) Current assets 310,000 44,000 Investment in Down 492,000 0 Buildings (net) 1,050,000 170,000 Equipment (net) 778,500 258,000 Total Assets 2,630,500 472,000 0 Liabilities (174,500) (100,000) Common Stock (720,000) (144,000) Additional Paid in Capital (100,000) Retained Earnings, December 31, 2019 (1,636,000) (228,000) Total Liabilities and Stockholders Equity (2,630,500) (472,000) Investment Analysis (10 points). Include FVCT, BVNAA, fair value adjustments, annual excess amortization, accumulated excess amortization and unamortized fair value adjustment. Compute goodwill, if any. If you leave any of these out, you will lose points. PROBLEM (30 points) Instructions: Prepare Investment Analysis and consolidation entries (SAIDEP) for the following business combination. Complete worksheet entries SAIDEP directly on the exam paper. Do not post to the worksheet or calculate consolidated totals. It will not be considered in grading. Partial credit is available. On January 1, 2016, Up Corp issued 24,000 shares of its commons stock (par value $i; market value $20) for all the outstanding shares of Down Corp. This combination was accounted for using the acquisition method and Down will remain as a wholly owned subsidiary of Up. At acquisition date, the book value of net assets of Down was $280,000. Up was willing to pay in excess of book value to acquire Down because the fair value of certain of Down's assets exceeded their book value. Specifically, Down's buildings (10 year life) had a fair value $100,000 greater than book value at date of acquisition and Down's equipment ( 5 year life) had a fair value $50,000 greater than book value at date of acquisition. The following are the individual financial records for these two companies for the year ended December 31, 2019. Credit balances are in parenthesis (same as textbook). At that date Down owed Up $18,000. Those amounts were included in the Current Assets of Up and the Liabilities of Down. Up Down Revenues 744,000) (216,000) Expenses 528,000 144,000 Equity in subsidiary earnings (52,000) (1,536,000) Net Income (268,000) (72,000) Retained earnings, January 1, 2019 (204,000) Net Income (268,000) (72,000) Dividends paid 168,000 40,00 Up Down Revenues 744,000) (216,000) Expenses 528,000 144,000 Equity in subsidiary earnings (52,000) Net Income (268,000) (72,000) Retained earnings, January 1, 2019 (1,536,000) (204,000) Net Income (268,000) (72,000) Dividends paid 168,000 48,000 Retained earnings, December 31, 2019 (1,636,000) (228,000) Current assets 310,000 44,000 Investment in Down 492,000 0 Buildings (net) 1,050,000 170,000 Equipment (net) 778,500 258,000 Total Assets 2,630,500 472,000 Liabilities (174,500) (100,000) Common Stock (720,000) (144,000) Additional Paid in Capital (100,000) 0 Retained Earnings, December 31, 2019 (1,636,000) (228,000) Total Liabilities and Stockholders Equity (2,630,500) (472,000) Investment Analysis (10 points). Include FVCT, BVNAA, fair value adjustments, annual excess amortization, accumulated excess amortization and unamortized fair value adjustment. Computerwowilliam. If you leave any of Revenues 744,000) (216,000) Expenses 528,000 144,000 Equity in subsidiary earnings (52,000) Net Income (268,000) (72,000) Retained earnings, January 1, 2019 (1,536,000) (204,000) Net Income (268,000) (72,000) Dividends paid 168,000 48,000 Retained earnings, December 31, 2019 (1,636,000) (228,000) Current assets 310,000 44,000 Investment in Down 492,000 0 Buildings (net) 1,050,000 170,000 Equipment (net) 778,500 258,000 Total Assets 2,630,500 472,000 0 Liabilities (174,500) (100,000) Common Stock (720,000) (144,000) Additional Paid in Capital (100,000) Retained Earnings, December 31, 2019 (1,636,000) (228,000) Total Liabilities and Stockholders Equity (2,630,500) (472,000) Investment Analysis (10 points). Include FVCT, BVNAA, fair value adjustments, annual excess amortization, accumulated excess amortization and unamortized fair value adjustment. Compute goodwill, if any. If you leave any of these out, you will lose points. PROBLEM (30 points) Instructions: Prepare Investment Analysis and consolidation entries (SAIDEP) for the following business combination. Complete worksheet entries SAIDEP directly on the exam paper. Do not post to the worksheet or calculate consolidated totals. It will not be considered in grading. Partial credit is available. On January 1, 2016, Up Corp issued 24,000 shares of its commons stock (par value $i; market value $20) for all the outstanding shares of Down Corp. This combination was accounted for using the acquisition method and Down will remain as a wholly owned subsidiary of Up. At acquisition date, the book value of net assets of Down was $280,000. Up was willing to pay in excess of book value to acquire Down because the fair value of certain of Down's assets exceeded their book value. Specifically, Down's buildings (10 year life) had a fair value $100,000 greater than book value at date of acquisition and Down's equipment ( 5 year life) had a fair value $50,000 greater than book value at date of acquisition. The following are the individual financial records for these two companies for the year ended December 31, 2019. Credit balances are in parenthesis (same as textbook). At that date Down owed Up $18,000. Those amounts were included in the Current Assets of Up and the Liabilities of Down. Up Down Revenues 744,000) (216,000) Expenses 528,000 144,000 Equity in subsidiary earnings (52,000) (1,536,000) Net Income (268,000) (72,000) Retained earnings, January 1, 2019 (204,000) Net Income (268,000) (72,000) Dividends paid 168,000 40,00 Revenues 744,000) (216,000) Expenses 528,000 144,000 Equity in subsidiary earnings (52,000) Net Income (268,000) (72,000) Retained earnings, January 1, 2019 (1,536,000) (204,000) Net Income (268,000) (72,000) Dividends paid 168,000 48,000 Retained earnings, December 31, 2019 (1,636,000) (228,000) Current assets 310,000 44,000 Investment in Down 492,000 0 Buildings (net) 1,050,000 170,000 Equipment (net) 778,500 258,000 Total Assets 2,630,500 472,000 0 Liabilities (174,500) (100,000) Common Stock (720,000) (144,000) Additional Paid in Capital (100,000) Retained Earnings, December 31, 2019 (1,636,000) (228,000) Total Liabilities and Stockholders Equity (2,630,500) (472,000) Investment Analysis (10 points). Include FVCT, BVNAA, fair value adjustments, annual excess amortization, accumulated excess amortization and unamortized fair value adjustment. Compute goodwill, if any. If you leave any of these out, you will lose points