The Board has requested that the accounting department provide a pro-forma balance sheet at date of acquisition (use January 1, 2017 balance sheet information for both companies) for the following two scenarios:

Purchase 100% of Stream Company; accounting for as an asset acquisition assuming a cash only payment of $120,000,000.

Purchase 75% of Stream Company; accounting for as a stock acquisition (consolidation) assuming consideration (payment) given is a combination of cash ($51,000,000) and Paddle-Up stock issuance (2,000,000 shares).

questions:

Asset acquisition balance sheet (date of acquisition).

Goodwill calculation

Journal entry

Schedule showing the impact of the journal entry on Paddle-Up Inc.s balance sheet to arrive at the post-asset acquisition balance sheet.

Stock acquisition balance sheet (date of acquisition).

Real entry

CAD

Workpaper entries in journal entry form

Workpaper

Stock acquisition 3-section workpaper as of 12/31/17 (cost method).

Real entry

Workpaper entries in journal entry form

Workpaper

- Stock acquisition 3-section workpaper as of 12/31/18 (cost method).

Real entry

Workpaper entries in journal entry form

Workpaper

Exhibit A-The Paddle-Up acquisition team discovered during their due diligence that Stream Company did not realize the following key facts: Stream Company management and board did not realize their patents and brands had significant value. Thus, they did not include these asset values in their own internal evaluation of the potential sale to Paddle-Up Inc. employees will be let go (fired) within 6 months of the acquisition. Stream Company management and board do not realize that their long-term customers will be faced with dramatic price increases to be implemented by Paddle-Up Inc. Financial Data: Balance Sheet and related information as of 1/1/17 (just before acquisition) Paddle-up Inc. stream Co. Stream Co. Assets Assets Fair Value 700,000 145,000,000 Cash 7,000,000 21,000,000 19,000,000 Accounts receivable 26,000,000 Inventory 38,000,000 62,000,000 50,000,000 Equipment 275,000,000 82,000,000 95,000,000 Building 50,000,000 5,000,000 5,000,000 4,000,000 Land 12,000,000 Patent Rights 10,000,000 30,000,000 Brand Value Total Assets S 546,000,000 S 179,000,000 Liabilities and Stockholders Equity Liabilities 44,000,000 44,000,000 42,000,000 Accounts payable 8,000,000 2,000,000 2.000,000 Notes payable (short-term) Notes payable (long-term) 185,000,000 75,000,000 75,000,000 Long-Term Debt 110,000,000 other Contaminated Land 2,000,000 Total Liabilities 345,000,000 S 121.000,000 Stockholders' Equity 10,000,000 3000,000 Common Stock, (Note 1) 125,000,000 17,000,000 APIC Retained Earnings 66,000,000 38,000,000 S 201,000,000 S 58000000 Total Stockholders' Equity Total Liabilities and Stockholders' Equity S 546,000,000 179,000,000 Note 1: Common Stock: $2 par (Paddle-Up) and $1 par (Stream Co. Note 2: Paddle-Up Stock has a Market Value of $18/share as of 1/1/17