Harvard Company purchases a 90% interest in Bart Company for $720,000 on January 1, 2011. The investment is accounted for under the cost method. At the time of the purchase, a building owned by Bart...

Harvard Company purchases a 90% interest in Bart Company for $720,000 on January 1, 2011. The investment is accounted for under the cost method. At the time of the purchase, a building owned by Bart is understated by $180,000; it has a 20-year remaining life on the purchase date. The remaining excess is attributed to goodwill. The stockholders’ equity of Bart Company on the purchase date is as follows: Common stock ($10par). …. .. .. . . . .. . . . . .. $350,000 Retained earnings . . . . .. .. .. …. . . . .. . . .. . . 200,000 Total equity . . .. . .. .. .. …. .. . .. . . .. . . . . .. $550,000 The following summarized statements are for the year ended December 31, 2012. (Credit balance amounts are in parentheses.) Required Using the vertical format, prepare a consolidated worksheet for December 31, 2012. Precede the worksheet with a value analysis and a determination and distribution of excess schedule. Include income distribution schedules to allocate the consolidated net income to the noncontrolling and controlling interests. View Solution:

Harvard Company purchases a 90 interest in Bart Company for