This is a continuation of the prior tab (Investments with Goodwill). Information is repeated below.
On January 1, 20X4, Acme Corporation acquired 100% of the outstanding common stock of Coyote, a foreign company (amounts translated to USD). To acquire these shares, Acme issued to the owners of Coyote $200,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $20 per share. Acme paid $30,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $12,000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows:
		Acme Corporation		Coyote
	Cash	$ 60,000		$ 20,000
	Receivables	270,000		90,000
	Inventory	360,000		140,000
	Land	200,000		180,000
	Buildings (net)	420,000		220,000
	Equipment (net)	160,000		50,000
	Accounts payable	(150,000)		(40,000)
	Long-term liabilities	(430,000)		(200,000)
	Common stock - $1 par value	(110,000)		-0-
	Common stock - $20 par value	-0-		(120,000)
	Additional paid - in capital	(360,000)		-0-
	Additional paid - in capital	(360,000)		-0-
	Retained earnings, 1/1/X4	(420,000)		(340,000)
	Note: Parentheses indicate a credit balance.
Acme's appraisal of Coyote's fair values deemed three accounts to be undervalued: Inventory by $5,000, Land by $20,000, and Buildings by $30,000. Acme plans to maintain Coyote's separate legal identity and to operate Coyote as a wholly owned subsidiary.
3. To verify the answers found in Part 2, adjust Acme's column of accounts for the journal entries in Part 1 and then prepare a worksheet to consolidate the balance sheets of these two companies at the acquisition date.
Do A consolidated financial statements when goodwill is present.
ACME CORPORATION AND CONSOLIDATED SUBSIDIARY COYOTE
Worksheet to prepare a Consolidated Balance Sheet
	1/1/20X4
	Accounts	Acme Corporation	Coyote	Consolidation Debit		Entries Credit		Consolidated Totals
	Cash
	Receivables
	Inventory
	Land
	Buildings (net)
	Equipment (net)
	Investment in Coyote
	Goodwill
	Total assets	0	0					0
	Accounts payable
	Longterm liabilities
	Common stock
	Additional paid in capital
	Retained earnings, 1/1/X4
	Total liab. and owners' equity	0	0		0		0	0