QUESTION 5 Phillips Company purchased a 90% interest in Standards Corporation for $1,170,000 on January 1, 2016. Standards Corporation had $825,000 of common stock and $525,000 of retained earnings on that date. The following values were determined for Standards Corporation on the date of purchase: Inventory Land Equipme Book Value $120,000 1,200,000 810,000 Fair Value $150,000 1,350,000 900,000 Required: A. Prepare a computation and allocation schedule for the difference between the implied and book value in the consolidated statements workpaper. B. Prepare the January 1, 2016, workpaper entries to eliminate the investment account and allocate the difference between implied and book value. A. Allocation of Difference Between Implied and Book Value Parent Share Non-Controlling Entire Value Share

Phillips Company purchased a 90% interest in Standards Corporation for $1,170,000 on January 1,2016 . Standards Corporation had $825,000 of common stock and $525,000 of retained earnings on that date. The following values were determined for Standards Corporation on the date of purchase: Required: A. Prepare a computation and allocation schedule for the difference between the implied and book value in the consolidated statements workpaper. B. Prepare the January 1,2016, workpaper entries to eliminate the investment account and allocate the difference between implied and bovk value