100% purchase, goodwill, limited adjustments, worksheet. Use the preceding information for Pantera’s purchase of Sader common stock. Assume Pantera purchased 100% of the common stock for $410,000. Pantera had the following balance sheet immediately after the purchase:
|
Pantera Company |
|||
|
Assets |
Liabilities and Equity |
||
|
Cash |
$51,000 |
Current liabilities |
$80,000 |
|
Accounts receivable |
65,000 |
Bonds payable |
200,000 |
|
Inventory |
80,000 |
Common stock |
20,000 |
|
Land |
100,000 |
Paid in capital in excess of par |
180,000 |
|
Investment in Sader |
410,000 |
Retained earnings |
446,000 |
|
Buildings |
250,000 |
||
|
Accumulated depreciation |
80,000 |
||
|
Equipment |
90,000 |
||
|
Accumulated depreciation |
40,000 |
||
|
Total assets |
$926,000 |
Total liabilities and equity |
$926,000 |
Required
1. Prepare a zone analysis and a determination and distribution of excess schedule for the investment in Sader.
2. Complete a consolidated worksheet for Pantera Company and its subsidiary Sader Company as of January 1, 20X1.