Road Corporation acquired all of Conger Corporation\'s voting shares on January

Question

Road Corporation acquired all of Conger Corporation's voting shares on January 1, 20X2, for $472,000. At that time Conger reported common stock outstanding of $95,000 and retained earnings of $135,000. The book values of Conger's assets and liabilities approximated fair values, except for land, which had a book value of $95,000 and a fair value of $115,000, and buildings, which had a book value of $236,000 and a fair value of $408,000. Land and buildings are the only noncurrent assets that Conger holds.

Compute the amount of goodwill at the date of acquisition.

Prepare the consolidating entry or entries required immediately following the acquisition to prepare a consolidated balance sheet. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the basic consolidation entry.

Record the excess value reclassification entry.

Compute the amount of goodwill at the date of acquisition.

Prepare the consolidating entry or entries required immediately following the acquisition to prepare a consolidated balance sheet. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Explanation / Answer

a Land Dr.$115000

Buiding Dr.$408000

Goodwill(Balancing figure) Dr.$179000

To investment in Conger $472000

To retained earning $135000

To common stock $95000

b building(408000-236000) Dr.172000

To revaluation in assets $172000

land(115000-95000) Dr.20000

To  revaluation in assets 20000

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