Use the preceding information for Palto’s purchase of Saleen common stock. Assume Palto purchases 100% of the Saleen common stock for $400,000 cash. Palto has the following balance sheet immediately...

Use the preceding information for Palto’s purchase of Saleen common stock. Assume Palto purchases 100% of the Saleen common stock for $400,000 cash. Palto has the following balance sheet immediately after the purchase: Required 1. Prepare the value analysis schedule and the determination and distribution of excess schedule for the investment in Saleen. 2. Complete a consolidated worksheet for Palto Company and its subsidiary Saleen Company as of January 1, 2011. In an attempt to expand its operations, Palto Company acquires Saleen Company on January 1, 2011. Palto pays cash in exchange for the common stock of Saleen. On the date of acquisition, Saleen has the following balance sheet: An appraisal provides the following fair values for assets: Accounts receivable . . . . . . . . . . $ 20,000 Inventory . . . . . . . . . . . . . . . . . . . 60,000 Land. . . . . . . . . . . . . . . . . . . . . . . 80,000 Buildings . . . . . . . . . . . . . . . . . . .320,000 Equipment . . . . . . . . . . . . . . . . . . 60,000 Copyright . . . . . . . . . . . . . . . . . . 50,000 View Solution:

Use the preceding information for Palto s purchase of Saleen common