Question: Venus Company purchases 8 000 shares of Sundown Company for 64

Venus Company purchases 8,000 shares of Sundown Company for $64 per share. Just prior to the purchase, Sundown Company has the following balance sheet:
Venus Company believes that the inventory has a fair value of $400,000 and that the property plant and equipment is worth $500,000.
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 acquisition.

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  • CreatedApril 10, 2015
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