Pilatte Company Acquired a 90% Interest in the Common Stock

Essay

Pilatte Company acquired a 90% interest in the common stock of Sweet Company for $630,000 on January 1, 20X3, when Sweet Company had the following stockholders' equity:
The preferred stock dividends are 2 years in arrears. Any excess is attributable to equipment with a 5-year life, which is undervalued by $40,000, and to goodwill.
Required:
Prepare a determination and distribution of excess schedule for the investment in Sweet Company.