Fortuna Company Issued 70,000 Shares of $1 Par Stock, with a Fair

Essay

Fortuna Company issued 70,000 shares of $1 par stock, with a fair value of $20 per share, for 80% of the outstanding shares of Acappella Company. The firms had the following separate balance sheets prior to the acquisition:
Book values equal fair values for the assets and liabilities of Acappella Company, except for the property, plant, and equipment, which has a fair value of $1,600,000.
Required:
a.Prepare a value analysis schedule
b.Prepare a determination and distribution of excess schedule.
c.Provide all eliminations on the partial balance sheet worksheet provided in Figure 2-9 and complete the noncontrolling interest column.