Refer to the preceding information for Fast Cools acquisition of Fast Airs common stock. Assume Fast Cool

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Refer to the preceding information for Fast Cool’s acquisition of Fast Air’s common stock. Assume Fast Cool issues 40,000 shares of its $20 fair value common stock for 100% of Fast Air’s common stock. Fast Cool uses the simple equity method to account for its investment in Fast Air. Fast Cool and Fast Air have the following trial balances on December 31, 2016:

Cash Accounts Receivable Inventory Land Investment in Fast Air Buildings Accumulated Depreciation Equipment

Required 

1. Prepare a value analysis and a determination and distribution of excess schedule for the investment in Switzer.
2. Complete a consolidated worksheet for Paulcraft Corporation and its subsidiary Switzer Corporation as of December 31, 2015. Prepare supporting amortization and income distribution schedules.

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Advanced Accounting

ISBN: 978-1305084858

12th edition

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

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