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DO ALL WORK PROB_1_TAB_1 on Parts a, b, c, d AS INDICATED ON REQUIRED in spaces provided below. DO ALL WORK for Parts e & f on PROB_1_TAB2. On 1/1/2019, Hillary Corp acquired Bill Inc. for $1,800,000. Hillary Corp issued 60,000 shares of its common stock with a par value of $5 per share and a fair value of $36 per share to execute this transaction. Bill Inc. will remain in existence and continue to operate. Hillary was willing to pay this level of consideration because it felt that buildings (ten-year life) were undervalued on Bill's records by $100,000 and equipment (eight-year life) was undervalued by $120,000. Any remaining consideration transferred over fair value of identified net assets acquired is assigned to goodwill. Hillary Corp. incurred $50,000 legal expenses and $32,000 stock issuance costs in executing this transaction. At the time of this transaction, Hillary Corp advanced $100,000 to Bill Inc. Bill Inc. had not paid back the advance as of December 31, 2019. For the year ended December 31, 2019, Bill Inc. reported net income of $260,000 and paid dividends of $80,000 to its shareholders.
REQUIRED: Prepare the journal entry to record Hillary Corp's acquisition of Bill Inc. on 1/1/2019. Answer in space provided PROB_1_TAB2 space a. b.
Prepare an Excess Amortization Schedule for this acquisition as of 1/1/2019. Answer in space provided PROB_1_TAB1 space c. below.
Prepare Consolidation Worksheet Entries S, A, I, D, E, and P for year 31, 2019 for Hillary and Bill. PROB_1_TAB_2 All entries.
