On 1/1/20x1, Petwoud Company exchanged 500,000 shares of its $1 par value common stock and $5,550,000 cash

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On 1/1/20x1, Petwoud Company exchanged 500,000 shares of its $1 par value common stock and $5,550,000 cash to acquire 70% of the outstanding voting common stock of Supagud, Inc. At the acquisition date, the fair value of Petwoud Company’s common stock was $14.90 per share. Other investors, unrelated to Petwoud Company, hold the remaining outstanding common stock of Supagud. Petwoud’s acquisition price was equal to the fair value of Supagud at 1/1/20x1. Thus, per share fair value of the noncontrolling interest did not differ from that of Petwoud. After the acquisition, Supagud, Inc. will continue as a separate operating company. Additionally, in its separate accounting records, Petwoud Company will apply the equity method to account for their investment in Supagud. At 1/1/20x1, Supagud‘s shareholders’ equity amounts were as follows: Common stock $15,000,000 Retained earnings $1,970,000 In conjunction with the acquisition, Supagud held the following assets with fair values that differed significantly from their recorded amounts: Recorded Value Fair Value @ 1/1/20x1 Remaining Useful Life (in years) Land $1,700,000 $2,550,000 Buildings (seven-year remaining life) 2,700,000 3,400,000 7 Equipment (five-year remaining life) 3,700,000 3,300,000 5 During fiscal year 20x1, Supagud’s 20x1 net income and dividends declared and paid were: Net income $550,000 Dividends declared and paid $140,000 Supagud did not issue common stock during fiscal year 20x1. Required Prepare the journal entry to record Petwoud Company’s investment in Supagud, Inc. at 1/1/20x1. Prepare a schedule showing the allocation of the purchase price to the fair value of the net assets acquired, including periodic depreciation/amortizations of the related purchase price adjustments. Prepare a schedule showing the computation of goodwill recorded at acquisition, if any. Prepare the worksheet consolidation journal entries for fiscal year-ending 12/31/20x1.