D&D with preferred stock. On January 1, 2016, Boelter Company purchases 80% of the outstanding common stock of Mill Corporation for $280,000. On this date, Mill Corporation stockholders’ equity is as...

D&D with preferred stock. On January 1, 2016, Boelter Company purchases 80% of the outstanding common stock of Mill Corporation for $280,000. On this date, Mill Corporation stockholders’ equity is as follows:

Prepare a determination and distribution of excess schedule under each of the following situations (any excess of cost over book value is attributable to goodwill):

1. The preferred stock is cumulative, with dividends one year in arrears at January 1, 2016, and has a liquidation value equal to par.

2. The preferred stock is noncumulative but fully participating.

3. The preferred stock is cumulative, with dividends two years in arrears as of January 1, 2016, and has a liquidation value equal to 110% of par.