Problem: Jernigan Corp. had the following account balances at 12/1/10:
Receivable $96,000
Inventory 240,000
Land 720,000
Building 600,000
Liabilities 480,000
Common stock 120,000
Additional paid-in capital 120,000
Retained earnings, 12/1/10 840,000
Revenues 360,000
Expenses 264,000
Several of Jernigan's accounts have fair values that differ from book value. The fair values are:
Land $480,000, Building $720,000, Inventory $336,000, and Liabilities $396,000.
Inglewood Inc acquired all of the outstanding common stock shares of Jerningan by using 20,000 shares of common stock having a $6 par value, but a $66 fair value. Stock issuance costs amounted to $12,000. Prepare a fair value allocation and goodwill schedule at the date of the acquisition.