Use the following information for Problems $2-14$:

Purnell Corporation acquires Sentinel Corporation on December $31,2015.$ Sentinel has the following balance sheet on the date of acquisition:

Sentinel Corporation

Balance Sheet

December $31,2015$

Assets Liabilities and Equity

Accounts receivable $$50,000$ Current liabilities $$90,000$

Inventory $120,000$ Bonds payable $200,000$

Land $100,000$ Common stock $($$$1$ par$)10,000$

Buildings $300,000$ Paid$-$in capital in excess of par $190,000$

Accumulated depreciation $(100,000)$ Retained earnings $140,000$

Equipment $140,000$

Accumulated depreciation $(50,000)$

Patent $10,000$

Goodwill $60,000$

Total assets $$630,000|$ Total liabilities and equity $$630,000|$

An appraisal is performed to determine whether the book values of Sentinel's net assets reflect their fair values. The appraisal also determines that intangible assets exist, although they are not recorded. The following fair values for assets and liabilities are agreed upon:

$$ Accounts receivable: $$50,000$

$$ Inventory: $$100,000$

$$ Land: $$200,000$

$$ Buildings: $$400,000$

$$ Equipment: $$200,000$

$$ Patent: $$150,000$

$$ Computer software: $$50,000$

$$ Current liabilities: $$90,000$

$$ Bonds payable: $$210,000$

Problem $2-14($LO $3,4,5,6,7,8)80\%$ purchase, goodwill, several adjustments, worksheet. Use the preceding information for Purnell$$s purchase of Sentinel common stock. Assume Purnell exchanges $19,000$ shares of its own stock for $80\%$ of the common stock of Sentinel. The stock has a market value of $$50$ per share and a par value of $$1.$ Purnell has the following trial balance immediately after the purchase:

Purnell Corporation

Trial Balance

December $31,2015$

Account Amount

Cash $20,000$

Accounts Receivable $300,000$

Inventory $410,000$

Investment in Sentinel $950,000$

Land $800,000$

Buildings $2,800,000$

Accumulated Depreciation $($Buildings$)(500,000)$

Equipment $600,000$

Accumulated Depreciation $($Equipment$)(230,000)$

Current Liabilities $(150,000)$

Bonds Payable $(300,000)$

Common Stock $($$$1$ par$)(92,000)$

Paid$-$In Capital in Excess of Par $(3,508,000)$

Retained Earnings $(1,100,000)$

Total: $0$

Required:

$1.$ Prepare the value analysis schedule and the determination and distribution of excess schedule for the investment in Sentinel.

$2.$ Complete a consolidated worksheet for Purnell Corporation and its subsidiary Sentinel Corporation as of December $31,2015.$