Exercise $6($LO $5,6,7)80\%$ purchase, alternative values for goodwill. Quail Com$-$

pany purchases $80\%$ of the common stock of Commo Company for $$800,000.$ At the time of

the purchase, Commo has the following balance sheet:

Assets

Liobilities and Equity

The fair values of assets are as follows:

Prepare the value analysis schedule and the determination and distribution of excess schedule

under three alternatives for valuing the $NCl$ :

a$.$ The value of the $NCl$ is implied by the price paid by the parent for the controlling interest.

b$.$ The market value of the shares held by the NCI is $$45$ per share.

c$.$ The international accounting option, which does not allow goodwill to be recorded as

part of the $NCt,$ is used.

Prepare the elimination entries that would be made on a consolidated workseet prepared

on the date of purchase under the three alternatives for valuing the NCI :

The value of the $NCl$ is implied by the price paid by the parent for the controlling interest.

b$.$ The market value of the shares held by the $NCl$ is $$45$ per share.

c$.$ The international accounting option, which does not allow goodwill to be recorded as

part of the $NCl,$ is used.