On December 31, 2015 (subsequent to the attached statements), Miland exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Barton. Miland's stock on that date had a fair value of $50 per share. Miland was willing to issue 10,000 shares of stock because Barton's land was appraised at $204,000. Miland also paid $14,000 to several attorneys and accountants who assisted in creating this combination.
Preliminary financial statements for Miland Company and Barton Company for the year ending December 31, 2015 are contained in the ‘Problem 2’ worksheet in the distributed Excel File.
Required:
Assuming that these two companies retained their separate legal identities, prepare a post-acquisition worksheet and a consolidation worksheet as of December 31, 2015 as well as a schedule that supports the determination of goodwill/bargain gain.