On January 1, 2016, Parent Company Purchased 90% of the Common

Essay

On January 1, 2016, Parent Company purchased 90% of the common stock of Subsidiary Company for $252,000.On this date, Subsidiary had total owners' equity of $240,000 consisting of $50,000 in common stock, $70,000 additional paid-in capital, and $120,000 in retained earnings.
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On January 1, 2016, the excess of cost over book value is due to a $15,000 undervaluation of inventory, to a $5,000 overvaluation of Bonds Payable, and to an undervaluation of land, building and equipment.The fair value of land is $50,000.The fair value of building and equipment is $200,000.The book value of the land is $30,000.The book value of the building and equipment is $180,000.
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Required:
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a.Complete the valuation analysis schedule for this combination.?
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b.Complete the determination and distribution schedule for this combination.?
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c.Prepare, in general journal form, the elimination entries required to prepare a consolidated balance sheet for Parent and Subsidiary on January 1, 2016.