Reference no: EM132472060

Pan purchased 80% of Spatula's common shares for $250,000 on August 1, Year 5. Pan and Spatula Inc. had the following balance sheets on August 1, Year 5 prior to the purchase:

                                            Pan                       Spatula                      Fair Value

Cash                                 $310,000              $65,000                    $65,000

Accounts Receivable             $50,000             $59,000                       $62,000

Inventory                            $40,000              $60,000                      $65,000

Plant and Equipment (net)       $300,000             $250,000               $210,000

Trademark                              -                     $33,000                   $23,000

Total Assets                        $700,000             $467,000

Accounts Payable                   $150,000              $115,000                 $115,000

Bonds Payable                       $390,000                $207,000                $210,000

Common Shares                        $120,000              $85,000

Retained Earnings                       $40,000                 $60,000

Total Liabilities and Equity                 $700,000         $467,000

Required

Question a) Prepare the journal entry to record the purchase of Spatula's common shares on August 1, Year 5.

Question b) Prepare the calculation and allocation of acquisition differential schedule and prepare the consolidated balance sheet at August 1, Year 5 (in good format and write out all words completely, including account names).

Question c) Calculate goodwill and non-controlling interest on the consolidated balance sheet on August 1, Year 5 under the parent company extension theory