Problem 2-14 80 Purchase Goodwill Several Adjustments Worksheet
S 926,000
Total liabilities and equity . . . .
S926,000
1. Prepare a zone analysis and a determination and distribution of excess schedule for the in- M M M M M Required vestment in Sader.
2. Complete a consolidated worksheet for Pantera Company and its subsidiary Sader Company as of January 1, 20X1.
Use the following information for Problems 2-11 through 2-14:
Purnell Corporation acquired Soma Corporation on December 31, 20X1. Purnell exchanged shares of its $1 par, $50 fair value stock for the common stock of Soma. Soma had the following balance sheet on the date of acquisition:
Assets
Accounts receivable
Inventory
Buildings
Accumulated depreciation .
Equipment
Accumulated depreciation .
Patent
Goodwill
Total assets
Soma Corporation
Balance Sheet December 31, 20X1
Liabilities and Equity
$ 50,000 Current liabilities $ 90,000
120,000 Bonds payable 200,000
100,000 Common stock 10,000
300,000 Paid-in capital in excess
140,000 Retained earnings 140,000
$ 630,000 Total liabilities and equity . . $630,000
An appraisal has been performed to determine whether the book values of Soma's net assets reflect their fair values. The appraiser also determined that several intangible assets existed, although they were not recorded. The following assets and liabilities had fair values that differed from their book values:
Inventory $150,000
Land 200,000
Buildings 400,000
Equipment 200,000
Patent 150,000
Computer software 50,000
Bonds payable 210,000
Problem 2-11 (LO 4,5, 6, 7,9) 100% purchase, goodwill, several adjustments, worksheet. Use the preceding information for Purnell's purchase of Soma common stock. Assume Purnell exchanged 24,000 shares of its own stock for 100% of the common stock of Soma. The stock had a market value of $50 per share and a par value of $1. Purnell had the following trial balance immediately after the purchase:
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Purnell Company Trial Balance December 31, 20X1
Accounts Receivable
Inventory
170,000 300,000 410,000 (continued)
Land 800,000
Investment in Soma 1,200,000
Buildings 2,800,000
Accumulated Depreciation (500,000)
Equipment 600,000
Accumulated Depreciation (230,000)
Current Liabilities (150,000)
Bonds Payable (300,000)
Paid-In Capital in Excess of Par (3,900,000)
Retained Earnings (1,100,000)
Total 0
Required
1. Prepare a zone analysis and a determination and distribution of excess schedule for the investment in Soma.
2. Complete a consolidated worksheet for Purnell Company and its subsidiary Soma Company as of December 31, 20X1.
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Problem 2-12 (LO 4, 5, 6, 7, 9) 100% purchase, bargain, several adjustments, worksheet. Use the preceding information for Purnell's purchase of Soma common stock. Assume Purnell exchanged 16,000 shares of its own stock for 100% of the common stock of Soma. The stock had a market value of $50 per share and a par value of $1. Purnell had the following trial balance immediately after the purchase:
Purnell Company Trial Balance December 31, 20X1
Cash 170,000
Accounts Receivable 300,000
Inventory 410,000
Land 800,000
Investment in Soma 800,000
Buildings 2,800,000
Accumulated Depreciation (500,000)
Equipment 600,000
Accumulated Depreciation (230,000)
Current Liabilities (150,000)
Bonds Payable (300,000)
Paid-In Capital in Excess of Par (3,508,000)
Retained Earnings (1,100,000)
Total 0
Required ► ► ► ► ► 1. Prepare a zone analysis and a determination and distribution of excess schedule for the investment in Soma.
2. Complete a consolidated worksheet for Purnell Company and its subsidiary Soma Company as of December 31, 20X1.
Problem 2-13 (LO 4, 5, 6, 7, 8, 9) 80% purchase, goodwill, several adjustments, worksheet. Use the preceding information for Purnell's purchase of Soma common stock. Assume Purnell exchanged 19,000 shares of its own stock for 80% of the common stock of Soma. The stock had a market value of $50 per share and a par value of $1. Purnell had the following trial balance immediately after the purchase:
Template CD
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Purnell Company Trial Balance December 31, 20X1
Cash 170,000
Accounts Receivable 300,000
Inventory 410,000
Land 800,000
Investment in Soma 950,000
Buildings 2,800,000
Accumulated Depreciation (500,000)
Equipment 600,000
Accumulated Depreciation (230,000)
Current Liabilities (150,000)
Bonds Payable (300,000)
Paid-In Capital in Excess of Par (3,655,000)
Retained Earnings (1,100,000)
Total 0
1. Prepare a zone analysis and a determination and distribution of excess schedule for the in- M M M M M Required vestment in Soma.
2. Complete a consolidated worksheet for Purnell Company and its subsidiary Soma Company as of December 31, 20X1.
Problem 2-14 (LO 4, 5, 6, 7, 8,9) 80% purchase, bargain, several adjustments, worksheet. Use the preceding information for Purnell's purchase of Soma common stock. Assume Purnell exchanged 10,000 shares of its own stock for 80% of the common stock of Soma. The stock had a market value of $50 per share and a par value of $1. Purnell had the following trial balance immediately after the purchase:
Template CD
Template CD
Purnell Company Trial Balance December 31, 20X1
Cash 170,000
Accounts Receivable 300,000
Inventory 410,000
Land 800,000
Investment in Soma 500,000
Buildings 2,800,000
Accumulated Depreciation (500,000)
Equipment 600,000
Accumulated Depreciation (230,000)
Current Liabilities (150,000)
Bonds Payable (300,000)
Paid-In Capital in Excess of Par (3,214,000)
Retained Earnings (1,100,000)
Total 0
1. Prepare a zone analysis and a determination and distribution of excess schedule for the in- M M M M M Required vestment in Soma.
2. Complete a consolidated worksheet for Purnell Company and its subsidiary Soma Company as of December 31, 20X1.
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