2015, Aron Company purchases 100% of the common stock of Shield Company for $450,000 cash. On this date, any excess of cost over book value is attributed to accounts with fair values that differ from...

2015, Aron Company purchases 100% of the common stock of Shield Company for $450,000 cash. On this date, any excess of cost over book value is attributed to accounts with fair values that differ from book values. These accounts of Shield Company have the following fair values: Cash……………………………………$ 40,000 Accounts receivable………………………30,000 Inventory……………………………….140,000 Land……………………………………..45,000 Buildings and equipment………………225,000 Copyrights……………………………….25,000 Current liabilities…………………………65,000 Bonds payable………………………….105,000 The following comparative balance sheets are prepared for the two companies immediately after the purchase: Required 1. Prepare the value analysis schedule and the determination and distribution of excess schedule for the investment in Shield Company. 2. Complete a consolidated worksheet for Aron Company and its subsidiary Shield Company as of December 31, 2015. View Solution:

2015 Aron Company purchases 100 of the common stock of