ADVANCED ACCOUNTING 2

Use the preceding information for Paltos purchase of Saleen common stock. Assume Palto purchases 100% of the Saleen common stock for $500,000 cash. Palto has the following balance sheet immediately after the purchase:

Assets Liabilities and Equity

Cash $61,000 Current Liabilities $80,000

Accounts Receivable $65,000 Bonds Payable $200,000

Inventory $80,000 Common Stock ($1 par) $20,000

Investment in Saleen $500,000 Paid-in capital in excess of par $180,000

Land $100,000 Retained Earnings $546,000

Buildings $250,000 Total Liabilities & Equity $1,026,000

Accumulated Depr-Bldgs ($80,000)

Equipment $90,000

Accumulated Depr-Equip ($40,000)

Total Assets $1,026,000

Prepare the value analysis schedule and the determination and distribution of excess schedule for the investment in Saleen.

Complete a consolidated worksheet for Palto Company and its subsidiary Saleen Company as of January 1, 2011.

ADVANCED ACCOUNTING 2 Use the preceding information for Palto's purchase of Saleen common stock. Assume Palto purchases 100% of the Saleen common stock for $500,000 cash. Palto has the following balance sheet immediately after the purchase: Assets Cash Accounts Receivable Inventory Investment in Saleen Land Buildings Accumulated Depr-Bldgs Equipment Accumulated Depr-Equip Total Assets $61,000 $65,000 $80,000 $500,000 $100,000 $250,000 ($80,000) $90,000 ($40,000) $1,026,000 Liabilities and Equity Current Liabilities Bonds Payable Common Stock ($1 par) Paid-in capital in excess of par Retained Earnings Total Liabilities & Equity $80,000 $200,000 $20,000 $180,000 $546,000 $1,026,000 1. Prepare the value analysis schedule and the determination and distribution of excess schedule for the investment in Saleen. 2. Complete a consolidated worksheet for Palto Company and its subsidiary Saleen Company as of January 1, 2011