Robinson Corporation purchased all the outstanding common stock of Hoffman Plastics, Inc. on December 31, 2011. Just before the purchase, the condensed balance sheets of the two companies appeared as follows.

Robinson used current assets of $1,225,000 to acquire the stock of Hoffman Plastics. The excess of this purchase price over the book value of Hoffman Plastics€™ net assets is determined to be attributable $86,000 to Hoffman Plastics€™ plant and equipment and the remainder to goodwill.

Instructions
(a) Prepare the entry for Robinson€™s acquisition of Hoffman Plastics, Inc. stock.
(b) Prepare a consolidated worksheet at December 31, 2011.
(c) Prepare a consolidated balance sheet at December 31,2011.

Transcribed Image Text:

Robinson Corporation $1,480,000 2,100,000 S3.580,000 S 578,000 1,950,000 1,052,000 S3,580,000 Hoffman Plastics, Inc 435,500 676,000 $1,111,500 92,500 525,000 494,000 $1,111500 Current assets Plant and equipment (net) Current liabilities Common stock Retained earnings