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:
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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.
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Required:
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a.Prepare a value analysis schedule
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b.Prepare a determination and distribution of excess schedule.?
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c.Provide all eliminations on the partial balance sheet worksheet provided in Figure 2-9 and complete the non-controlling interest column.?
Figure 2-9
Fortuna Co.and Subsidiary Acappella Co.Partial Worksheet for Consolidated Financial Statements
January 2, 2016
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Balance Sheet
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Account Titles
Fortuna
Acappella
Current Assets
2,100,000
960,000
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Property, Plant, and
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Equipment
4,600,000
1,300,000
Investment in Acappella
1,400,000
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Goodwill
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240,000
Liabilities
(3,000,000)
(800,000)
Common Stock - Fortuna
(870,000)
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Paid-in Capital in Excess
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of Par - Fortuna
(3,530,000)
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Retained Earnings - Fortuna
(700,000)
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Common Stock - Acappella
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(200,000)
Paid-in Capital in Excess
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of Par - Acappella
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(300,000)
Retained Earnings - Acappella
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(1,200,000)
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