Problems

Problem $1(21$ points$)$

Company A acquires $a60\%$ interest $in$ Company $B$ for a purchase price $of$ $$540,000.$ The fair value $of$ Company $Bis$ $$900,000on$ the acquisition date. The excess $of$ the purchase price over the book value $of$ Company $B\text{'}s$ Stockholders' Equity $is$ allocated $toan$ unrecorded Customer List that the parent values $at$ $$40,000$ and the remainder $to$ Goodwill $in$ the amount $of$ $$20,000,60\%$ which $is$ allocated $to$ the parent.

$A.$Prepare the consolidation spreadsheet $on$ the acquisition date.