Todd Keller $ 1,200,000 $ 50,000 300,000 1,500,000 47,000 2,100,000 Cash ... $ Accounts receivable 2,400,000 Inventory .. Prepayments Depreciable fixed assets . Investment in Keller Company.. Total assets.. 11,200,000 422,000 18,978,000 2,240,000 $36,440,000 $3,997,000 $ 7,200,000 1,615,000 $1,750,000 400,000 Payables ... Accruals. .. Common stock ($100 par) Paid-incapital in excess of par Retained earnings ... Total liabilities and equity 1,000,000 1,000,000 8,900,000 .. 17,725,000 $36,440,000 847,000 $3,997,000
On December 31, 2016, immediately after Todd Company’s acquisition of 80% of Keller Company, their balance sheets are as attached:
An appraisal on December 31, 2016, which is considered carefully and approved by the boards of directors of both companies, places a total replacement value, less depreciation, of $2,800,000 on Keller’s depreciable fixed assets. The remaining depreciable life is 20 years. Todd Company offers to purchase all the assets of Keller Company, subject to its liabilities, as of December 31, 2016, for $2,500,000. Some of the stockholders of Keller Company object to the price because it does not include enough consideration for
Prepare a consolidated worksheet and a consolidated balance sheet as of December 31, 2016. Include a value analysis and a determination and distribution schedule.
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