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, 2019, when Sweet Company had the following stockholders' equity:
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$$\begin{array} { l r } \text { Preferred stock ( } 5 \% \text { cumul ative, } \$ 100 \text { par) } & \$ 80,000 \\\text { Common stock } \$ 10 \text { par) } & 350,000 \\\text { Paid-in capital in excess of par, common stock } & 75,000 \\\text { Retained earnings } & 150,000 \\\quad \text { Total } & \$ 655,000\end{array}$$ 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.
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Required:
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Prepare a determination and distribution of excess schedule for the investment in Sweet Company.