xercise $5($LO $5,6)$ Purchase with a gain. Libra Company is purchasing $100\%$ of the outstanding stock of Genall Company for $$700,000.$ Genall has the following balance sheet on the date of acquisition:

Assets

Accountsreceivable $...........$ Inventory $....................$ Property, plant, and equipment

$($net$)......................$

Computersoftware $............$ Totalassets.................

$

$300,000200,000$

$500,000125,000$

Liabilities and Equity

Currentliabilities.............. Bondspayable $...............$ Commonstock$($$$5$par$).........$

Paid$-$in capital in excess of par $...$ Retainedearnings $.............$

Total liabilities and equity $.....$

$ $250,000200,000200,000$

$300,000175,000$

$$1,125,000$

Accountsreceivable $...............$ Inventory $........................$ Property, plant, and equipment $.......$ Computersoftware $................$ Currentliabilities.................. Bondspayable $...................$

$$300,000215,000700,000130,000250,000210,000$

$$1,125,000$

Appraisals indicate that the following fair values for the assets and liabilities should be acknowledged:

$1.$ Preparethevalueanalysisscheduleandthedeterminationanddistributionofexcessschedule. $2.$ Prepare the elimination entries that would be made on a consolidated worksheet prepared

on the date of purchase.