Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) Total Assets Liabilities and Equity 110,000 Accounts Payable 200,000 Bonds Payable 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) 210,000 Paid-in Capital in excess of par Retained Earnings 1,000,000 Total Liabilities and Equity 100,000 160,000 350,000 1,000,000 The fair value of the assets are as follows: Fair Value Cash equivalents 110,000 Inventory 220,000 Land 120,000 Building 480,000 Equipment 190,000 730,000 Required: 1. Prepare the value analysis schedule and the determination and distribution of excess schedule for the investment in Starnes Company 2. Prepare the elimination entries that would be made on a consolidation worksheet prepared on the date of purchase. 1. Value Analysis Schedule Company Implied Parent Price Fair Value % NCI Value % Company Fair Valge Fair Value of Net Assets Excluding Goodwill Goodwill Gain on acquisition Determination and Distribution of Excess Schedule Company Implied Parent Price NCI Value Value % Fair Value of Subsidiary Less Book Value of Interest Acquired Common Stock Paid in Excess Retained Earnings Total Equity Interest Acquired Book Value Excess of Fair Value over Book Value Adjustment of identifiable accounts: Account Adjustment Worksheet key debit D1 debit D2 debit 03 credit D4 debit D5 Total 2. Prepare the elimination entries below: Debit Credit