Supernova Company Had the Following Summarized Balance Sheet on December

Essay

Supernova Company had the following summarized balance sheet on December 31, 20X1:
The fair value of the inventory and property and plant is $600,000 and $850,000, respectively.
Required:
a.
Assume that Redstar Corporation purchases 100% of the common stock of Supernova Company for $1,800,000. What value will be assigned to the following accounts of the Supernova Company when preparing a consolidated balance sheet on December 31, 20X1?
(1)
Inventory
_________
(2)
Property and plant
_________
(3)
Goodwill
_________
(4)
Noncontrolling interest
_________
b.
Prepare a valuation schedule
c.
Prepare a supporting determination and distribution of excess schedule.