# Question

On March 1, 2015, Penson Enterprises purchases an 80% interest in Express Corporation for \$320,000 cash. Express Corporation has the following balance sheet on February 28, 2015:
Penson Enterprises receives an independent appraisal on the fair values of Express Corporation’s assets and liabilities. The controller has reviewed the following figures and accepts them as reasonable:
Accounts receivable . . . . . . . . . . \$ 60,000
Inventory . . . . . . . . . . . . . . . . . . . 100,000
Land. . . . . . . . . . . . . . . . . . . . . . . 50,000
Buildings . . . . . . . . . . . . . . . . . . . 200,000
Equipment . . . . . . . . . . . . . . . . . . 162,000
Current liabilities . . . . . . . . . . . . . 50,000
Bonds payable . . . . . . . . . . . . . . 95,000
Required
1. Record the investment in Express Corporation.
2. Prepare the value analysis schedule and the determination and distribution of excess schedule.
3. Prepare the elimination entries that would be made on a consolidated worksheet prepared on the date of acquisition.

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