Supernova Company had the following summarized balance sheet on December $31$ of the current year:

Assets

Accounts receivable $ $350,000$

Inventory $450,000$

Property and plant $($net$)600,000$

Total $$1,400,000$

Liabilities and Equity

Notes payable $ $600,000$

Common stock, $$5$ par $300,000$

Paid$-$in$-$capital in excess of par $400,000$

Retained earnings $100,000$

Total $$1,400,000$

The fair value of the inventory and property and plant is $$600,000$ and $$850,000$ respectively.

Assume that Redstar Corporation exchanges $75,0000$f its $$3$par value shares of common stock, when the fair price is $$20$ per share, for $100\%$ of the common stock of Supernova Company. Redstar incurred acquisition costs of $$5,500$ and stock issuance of $$5,000.$

Required:

What journal entries will Redstar Corporation record for the investment in Supernova and issuance stock? $(10$ Points$)$

Prepare a supporting value analysis and determination and distribution of excess schedule. $(15$ Points$)$

Prepare Redstar$$s elimination and adjustment entry for the acquisition of Supernova. $(15$ Points$)$