Description
Assignment Option #2: Fundamental Journal Entries and Calculations
Using the data in the Option 2 Spreadsheet (linked at the bottom of the page), you are to:
- Provide the journal entry to record the asset transfer
- Calculate the amount of goodwill or bargain purchase.
Requirements:
Complete all work on the spreadsheet attached to this assignment. It will be your only deliverable.
Clearly identify the requirements being addressed. Show all calculations within the cells of an Excel spreadsheet. This means that you must use formulas and links so that the thought process can be examined. Make good use of comments to convey your thought process as well. No hard coding of solutions. Submit a single MS Excel file for grading.
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Explanation & Answer

Hi,I have completed and attached the work in an Excel file below. Kindly let me know if it is satisfactory or if you need me to work on it some more. I made use of comments as per directions.
Assume that Parent Company decides to acqui
Assets, Liabilities & Equities
Cash
AR
Inventory
Land
Plant and Equipment
Less: Accumulated Depreciation
Goodwill
Sub Company Balance Sheet
Book Value
$40,000
$15,000
$105,000
$60,000
$400,000
-$150,000
$10,000
Patent
Total Assets
AP
$0
$480,000
$50,000
Common Stock
Additional Paid In Capital
Retained Earnings
Total Liabilities & Equity
$100,000
$60,000
$270,000
$480,000
Fair Value
$40,000
$10,000
$200,000
$100,000
$300,000
$0
$650,000
$50,000
Assume tha...
