SHOW WORK [PLEASE

Parrot acquires Sun on 1/1/2020. Sun's account is tabulated as the follows. Parrot paid $800,000 in cash: Book Values Fair Values 1/1/20 1/1/20 Difference Current assets $ 320,000 $320,000 $ -0- Trademarks (indefinite life) 200,000 220,000 + 20,000 Patented technology 320,000 450,000 +130.000 (10-year remaining life) Equipment (5-year remaining life) 180,000 150,000 (30,000) Liabilities (420,000) (420,000) -0- Net book value $ 600,000 $720,000 $ 120,000 Common stock-$40 par value Additional paid-in capital Retained earnings, 1/1/20 $(200,000) (20,000) (380,000) On 8/1/2020, Sun announced dividend $40,000, and paid for it on 8/8/14. At the end of 2020, Sun reported net income $100,000. On 1/1/2020, as the accountant of Parrot, assign consideration transferred over cost to assets, liabilities and Goodwill, if any. In the meanwhile, calculate the amortization of excess payments over the book value of net assets of Sun: Allocation and amortization table 250000 Total consideration transferred: Total book value 40,000*30%) Total excess payment -120000 70000 Useful Life Amortization Allocation: Total undervalued Trademarks Total undervalued Patent Total overvalued Equipment Total goodwill Total excess payment Total: Parrot acquires Sun on 1/1/2020. Sun's account is tabulated as the follows. Parrot paid $800,000 in cash: Book Values Fair Values 1/1/20 1/1/20 Difference Current assets $ 320,000 $320,000 $ -0- Trademarks (indefinite life) 200,000 220,000 + 20,000 Patented technology 320,000 450,000 +130,000 (10-year remaining life) Equipment (5-year remaining life) 180,000 150,000 (30,000) Liabilities (420,000) (420,000) -0- Net book value $ 600,000 $720,000 $ 120,000 Common stock-$40 par value Additional paid-in capital Retained earnings, 1/1/20 $(200,000) (20,000) (380,000) On 8/1/2020, Sun announced dividend $40,000, and paid for it on 8/8/14. At the end of 2020, Sun reported net income $100,000. On 1/1/2020, as the accountant of Parrot, assign consideration transferred over cost to assets, liabilities and Goodwill, if any. In the meanwhile, calculate the amortization of excess payments over the book value of net assets of Sun: Allocation and amortization table 250000 Total consideration transferred: Total book value 40,000*30%) Total excess payment -120000 70000 Useful Life Amortization Allocation: Total undervalued Trademarks Total undervalued Patent Total overvalued Equipment Total goodwill Total excess payment Total