Jernigan Corp. had the following account balances at 12/1/17: Receivables$96,000Inventory 240,000Land 720,000Buildings 600,000Liabilities 480,000Common stock 120,000Additional paid-in capital 120,000Retained earnings, 12/1/17 840,000Revenues 360,000Expenses 264,000??Several of Jernigan's accounts have fair values that differ from book value. The fair values are: Land - $480,000; Building - $720,000; Inventory - $336,000; and Liabilities - $396,000. Inglewood Inc. acquired all of the outstanding common shares of Jernigan by issuing 20,000 shares of common stock having a $6 par value per share, but a $66 fair value per share. Stock issuance costs amounted to $12,000.?Required:?Prepare a fair value allocation and goodwill schedule at the date of the acquisition.
What will be an ideal response?
| Fair value consideration transferred by Inglewood (20,000 shares × $66) | $ | 1,320,000 | |||||
| Fair value of Jernigan assets acquired and liabilities assumed | $ | (1,236,000 | ) | ||||
| Excess of consideration transferred over net fair value of assets and liabilities | $ | 84,000 | |||||
| Allocations to specific accounts based on the acquisition-date fair value | |||||||
| Receivables | $ | 96,000 | |||||
| Inventory | 336,000 | ||||||
| Land | 480,000 | ||||||
| Building | 720,000 | ||||||
| Liabilities | (396,000 | ) | (1,236,000 | ) | |||
| Goodwill | $ | 84,000 | |||||
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