Question: please solve this problem as early as possible. thank you so much! Allen Company acquired 100 percent of Bradford Company's voting stock on January 1,




Allen Company acquired 100 percent of Bradford Company's voting stock on January 1, 2017, by issuing 10,000 shares of its $10 par value common stock (having a fair value of $14.50 per share). As of that date, Bradford had stockholders' equity totaling $104,800. Land shown on Bradford's accounting records was undervalued by $12,300 Equipment (with a five-year remaining life) was undervalued by $7,300. A secret formula developed by Bradford was appraised at $20,600 with an estimated life of 20 years. The following are the separate financial statements for the two companies for the year ending December 31, 2021. There were no intra-entity payables on that date. Credit balances are indicated by parentheses. Bradford Company $ (227,500) 85,000 57,800 ces Allen Company $ (740,000) 245,000 156,750 (83,010) $ (421,260) S (726,000) (421,260) 175,500 $ (971,760) $ 340,000 255,850 Revenues Cost of goods sold Depreciation expense Subsidiary earnings Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings ,12/31/21 Current assets Investment in Bradford Company Land Buildings and equipment (net) Total assets Current liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and equity $ (85,500) $ (117,600) (85,500) 40.000 $ (163,100) $ 84,000 492,000 808,000 $ 1,895,850 5 (234,090) (600,000) (90,000) (971,760 $(1,895,850) 65,700 174,000 $ 323,700 $(95,600) (60,000) (5,000) (163, 100) $ (323,700) a-1. Complete the table to show the allocation of the fair value in excess of book value. a-2. Complete the table to show the computation for Subsidiary Earnings. b. Complete the worksheet by consolidating the financial information for these two companies. Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Req B Complete the table to show the allocation of the fair value in excess of book value. Accounts Amount Life Annual Excess Amortizations years years years years years Total $ 0 0 Reg A1 Req A2 > ALLEN AND SUBSIDIARY Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Accounts Allen Co. Bradford Co. Debit Credit Consolidated Totals Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Equity in subsidiary earnings Net income $ (740,000) $ (227,500) 245,000 85,000 156,750 57,000 0 0 0 (83,010) $ (421,260) $ (85,500) Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 (726,000) (421,260) 175,500 $ (971,760) $ (117,600) (85,500) 40,000 (163 100) $ 84,000 Balance Sheet Current assets Investment in Bradford Co. Land Buildinas and equipment (net) 0 340,000 $ 255,850 492,000 808.000 65 700 174.0001
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