Prior to January 2, 2018, Prestar and Saturn are separate corporations. Saturn Corporation is contemplating a major expansion and seeks to be purchased by a larger corporation with available cash. Prestar Corporation issues $1,350,000 of bonds and uses the proceeds to buy 30,000 newly issued Saturn shares for $45 per share. The price reflects a control premium since the fair value of the NCI shares is $40. Just prior to the issue of the bonds and the issue and purchase of Saturn stock,

Prestar and Saturn have the following separate balance sheets:

Purchasing the 30,000 new shares gives Prestar Corporation a 60% controlling interest (30,000 of a total 50,000 common shares). On the purchase date, Saturn's property is undervalued by $200,000 and has a remaining life of 20 years. Any remaining excess cost can be attributed only to goodwill.
Prepare a determination and distribution of excess schedule for Prestar Corporation's investment in Saturn. Prepare a consolidated balance sheet for the consolidated firm immediately after the acquisition by Prestar Corporation.

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Prestar Co Saturn Corporation $100,000 Assets tion Current assets Land Property, plant, and equipment $ 600,000 150,000 700,000 $1,450,000 60,000 400,000 $560,000 Total assets..._....___ . Liabilities and Stockholders' Equi Current liabilities Common stock ($5 par) $ 250,000 400,000 800,000 $1,450,000 $100,000 100,000 360,000 $560,000 Total liabilities and equity .