Problem: Value analysis Schedule
Parent Co. is acquiring an 80% interest in the common stock Subsidiary Co. the price paid the 80% interest is $750,000. Subsidiary Co.'s balance sheet amounts at book value and fair value follows:
|
Account
|
Book Value
|
Fair Value
|
|
Current Assets
|
$200,000
|
$310,000
|
|
Fixed Assets
|
350,000
|
900,000
|
|
Liabilities
|
(200,000)
|
(200,000)
|
Required: Prepare the Value Analysis Schedule for Parent Co. below. Please show your calculation!!