# Question

Libra Company is purchasing 100% of the outstanding stock of Genall Company for \$700,000. Genall has the following balance sheet on the date of acquisition:
Appraisals indicate that the following fair values for the assets and liabilities should be acknowledged:
Accounts receivable . . . . . . . . . . . . . . . \$300,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . 215,000
Property, plant, and equipment. . . . . . . 700,000
Computer software . . . . . . . . . . . . . . . . 130,000
Current liabilities . . . . . . . . . . . . . . . . . . 250,000
Bonds payable . . . . . . . . . . . . . . . . . . . 210,000
1. Prepare the value analysis schedule and the determination and distribution of excess schedule.
2. Prepare the elimination entries that would be made on a consolidated worksheet prepared on the date of purchase.

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