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    Allocation schedule for cost book value

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    Palor Corp acquired 70% of the outstanding common stock of Setting Corp on
    Janunary 1, 2006 for $178,000 cash. Immediately after this acuquisition the
    balance sheet information for the two companies was as follows

    Palor Bv Book Value Fair Value
    Cash 32,000 20,000 20,000
    Receivables-net 80,000 30,000 30,000
    Inventories 70,000 30,000 50,000
    Land 100,000 50,000 60,000
    Buildings-net 110,000 70,000 90,000
    Equipment-net 80,000 40,000 30,000
    Investment in setting 178,000 ______ ______
    Total assets 650,000 240,000 280,000

    Accounts payable 90,000 80,000 80,000
    other liabilities 10,000 50,000 40,000
    Capital stock $10 par 500,000 100,000
    Retained earnings 50,000 10,000
    Total equities 650,000 240,000

    Prepare a schedule to allocate the difference between the cost of the investment in setting
    and the book value of the interest to identifiable and unidentifiable net assets.

    Prepare a consolidated balance sheet for Palor Corp and Subsidiary at January 1, 2006

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    https://brainmass.com/business/financial-statements/allocation-schedule-cost-book-value-309775

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    The allocation schedule for cost book values are examined. A consolidated balance sheet for Palor Corp is prepared.

    $2.19

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