On January 2,2019,Eagle Company Acquired 100% of Solly Company's Common

Essay

On January 2,2019,Eagle Company acquired 100% of Solly Company's common stock for $900,000 cash in a merger transaction.At this date,the book value of all of Solly Company's assets,except a building,was $700,000.The fair value of these assets without the building was $800,000.In addition to these assets is a building that has a book value of $400,000 and a fair value of $440,000.The book value and fair value of Solly Company's liabilities is $520,000.
A.Prepare a schedule to calculate the goodwill arising from the transaction.
B.Prepare the journal entry to record the merger on the books of Eagle Company at the acquisition date.