Cove Corporation owns all of Bay Corporation's common stock, acquired for $ 1,600,000 cash. Immediately prior to

Question:

Cove owns all of Bay Corporation's common stock, acquired for $ 1,600,000 cash. Immediately prior to the acquisition, Cove reported current assets of $5,200,000, noncurrent assets of $3,800,000, and liabilities of $3,500,000. The date-of-acquisition consolidated reports consolidated total assets of $13,000,000, including of $340,000 related to the acquisition of Bay. The book values of Bay's identifiable assets and liabilities approximated their fair values, except for previously unreported identifiable intangibles with a fair value of $800,000.
Required,
a. Calculate the fair value of Bay's identifiable total assets at the date of acquisition.
b. Calculate the fair value of Bay's liabilities at the date of acquisition.
c. Calculate the book value of Bay's net assets at the date of acquisition.
d. Prepare the working paper eliminating entries to consolidate Cove and Bay at the date of acquisition. Goodwill
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