Schedule To Allocate Fair Value - Book Value Differentials
Schedule To Allocate Fair Value - Book Value Differentials
Schedule To Allocate Fair Value - Book Value Differentials
Allocation of excess
Check:
Unamortized excess:
Land 240,000
Goodwill 300,000
P2-9
Preliminary computations
Investment cost of 90% interest in Sigma $1,980,000
Excess allocated
To record income from Sigma computed as follows: Provo’s share of Sigma’s reported
net income ($200,000 ´ 90%) plus $50,000 amortization of overvalued plant assets.
Check: Investment balance December 31, 2010 of $2,055,000 + $230,000 income from Sigma -
$135,000 dividends = $2,150,000 balance December 31, 2011