On January 1, 2015, Pope Company purchased 90% of Sun Company's common stock for $5,800,000 cash. Immediately after the acquisition, the two companies' balance sheets were as follows:

Sun Company's note payable includes a $90,000 note payable to Pope Company, plus $20,000 payable to a bank. Any difference between book value and the value implied by the purchase price relates to subsidiary property and equipment.
Required:
A. Prepare a Computation and Allocation Schedule for the difference between book value of equity and the value implied by the purchase price?
B. Prepare a consolidated balance sheet work-paper on January 1, 2015?

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Accounts receivable receiva Inventory Investment in Sun Company Plant and equipment (net) $15,904,000 Common stock ($15 par) Other contributed capital Treasury stock held $15,904,000