Road Corporation acquired all of Conger Corporation's voting shares on January 1, 20X2, for $480,000. At that time Conger reported common stock outstanding of $92,000 and retained earnings of $144,000. The book values of Conger's assets and liabilities approximated fair values, except for land, which had a book value of $92,000 and a fair value of $112,000, and buildings, which had a book value of $226,000 and a fair value of $414,000. Land and buildings are the only noncurrent assets that Conger holds.
a. Compute the amount of Goodwill at the date of acquisition.
b. Prepare the consolidating entry or entries required immediately following the acquisition to prepare a consolidated balance sheet. Two journal entries should be the consolidation entry and the excess value reclassification entry.