1 Cash & receivables 30,000.

00
Inventory 120,000.00
Plant Assets (net) 300,000.00
Less: Current Liabilities 45,000.00
Long term debt 115,000.00
290,000.00

2 No revenues and expenses -

3 Revenue 250,000.00
Less: Expenses 170,000.00
Pre-acquisition earnings 80,000.00

4 Investment in GG reported by RR 192,000.00

5 Increase in identifiable assets 310,000.00

6 Increase in total Liabilities 95,000.00

7 Investment in GG 192,000.00
Fair Value of noncontrolling interest 48,000.00
Total Value 240,000.00

Fair Value of assets 310,000.00

Less: Fair Value of Liabilities 95,000.00
Net assets & liabilities 215,000.00

Total fair value 240,000.00

Less: Net assets and liabilities 215,000.00
Full goodwill for the combined entity 25,000.00

8 Noncontolling interest 48,000.00

9 Inventory, RR 110,000.00
Inventory, DD 180,000.00
Less: Inventory held by DD (180k-170k) 10,000.00
Total Inventory 280,000.00

10 Bldgs & equip. (net), RR 350,000.00

 Bldgs & equip. (net), DD 375,000.00
Total bldgs & equipments 725,000.00

11 investment in DD stock -

12 FV of subsidiary 280,000.00
FV of DD net assets:
Cash & receivables 40,000.00
Inventory 170,000.00
Bldgs. & equipments 375,000.00
Less: accounts payable 90,000.00
Notes payable 250,000.00
FV of net identifiable assets 245,000.00
Goodwill 35,000.00

13 Comon stock, RR 400,000.00

14 Retained earnings, RR 105,000.00