Bell Corporation purchases all of the outstanding stock of Stockdon Corporation for $220,000 in cash on January 1, 2017. On the purchase date, Stockdon Corporation has the following condensed balance sheet:
Any excess of book value over cost is attributable to the building, which is currently overstated on Stockdon’s books. All other assets and liabilities have book values equal to fair values. The building has an estimated 10-year life with no salvage value.
The trial balances of the two companies on December 31, 2017, appear as follows:
1. Prepare a determination and distribution of excess schedule for the investment. (A value analysis is not needed.)
2. Prepare the 2017 consolidated worksheet. Include columns for the eliminations and adjustments, the consolidated income statement, the controlling retained earnings, and the consolidated balance sheet.
3. Prepare the 2017 consolidated statements, including the income statement, retained earnings statement, and balance sheet.

  • CreatedApril 13, 2015
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