100%, complicated excess, equity method, first year. Refer to the preceding information for Fast Cool’s acquisition of Fast Air’s common stock. Assume Fast Cool issues 40,000 shares of its $20 fair...

100%, complicated excess, equity method, first year. Refer to the preceding information for Fast Cool’s acquisition of Fast Air’s common stock. Assume Fast Cool issues 40,000 shares of its $20 fair value common stock for 100% of Fast Air’s common stock. Fast Cool uses the simple equity method to account for its investment in Fast Air. Fast Cool and Fast Air have the following trial balances on December 31, 2015:

1. Prepare a value analysis and a determination and distribution of excess schedule for the investment in Fast Air.

2. Complete a consolidated worksheet for Fast Cool Company and its subsidiary Fast Air Company as of December 31, 2015. Prepare supporting amortization and income distribution schedules.