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suppose instead that Perry acquired the 8,000 shares for $20 per share including a $5 per share control premium

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suppose instead that Perry acquired the 8,000 shares for $20 per share including a $5 per share control premium. Prepare a computation and allocation of difference schedule. PROBLEM 3-3 intercompany Bond Holdings at Par, 90% Owned Subsidiary LOI LO Balance sheets for Company and Company on August 1, 2019, are as follows: P Company Company Cash $165.500 $106.000 Receivables 366.000 126.000 Inventory 261.000 108.000 Investment in bonds 306,000 Investment in s Company stock 586,500 Plant and equipment (net) 573.000 320,000 Land Total $2.468.000 $60,000 Accounts payable $ 174.000 3 58.000 Accrued expenses 32.400 26.000 Bonds payable, 8 -0- 200.000 Common stock 1,500,000 460.000 Other contributed capital 260.000 60.000 Retained earnings 490.000 356.000 Total $263.000 $60,000 Required: Prepare a workpaper for a consolidated balance sheet for Company and its subsidiary on August 1, 2019, taking into consideration the following: 1. P Company acquired 90% of the outstanding common stock of Company on August 1, 2019, for a cash payment of $586,500. 2. Included in the Investment in Bonds account are $40,000 par value of Company bonds payable that were purchased at par by P Company in 2002. The bonds pay interest on April 30 and October 31. Company has appropriately accrued interest expense on August 1, 2019;P Company, however, inadvertently failed to accro interest income on the Company bonds. 3. Included in P Company receivables is a $35.000 cash advance to s Company that was mailed on August 1, 2019. Company had not yet received the advance at the time of the preparation of its August 1, 2019 4. Assume that any excess of book value over the value implied by purchase price is due to overvalued plant and equipment
Required: Prepare a workpaper for a consolidated balance sheet for Company and its subsidiary on August 1, 2019, taking into consideration the following: 1. P Company acquired 90% of the outstanding common stock of Company on August , 2019, for a cash payment of $586,500 2. Included in the Investment in Bonds account are $40,000 par value of Company bonds payable that were purchased at par by P Company in 2002. The bonds pay interest on April 3o and October 31. Company has appropriately accrued interest expense on August 1, 2019: P Company, however, inadvertently failed to accros interest income on the Company bonds. 3. Included in Company receivables is a $35,000 cash advance to Company that was mailed on August 1, 2019. Company had not yet received the advance at the time of the preparation of its August 1, 2019 4. Assume that any excess of book value over the value implied by purchase price is due to overvalued plant and equipment