Expert Answer :Problem 2-7 – 100% purchase, goodwill, limited adj

Solved by verified expert :Problem 2-7 – 100% purchase, goodwill, limited adjustments, worksheet. Use the preceding information for Pantera’s purchase of Sader common stock. Assume Pantera purchased 100% of the common stock for $410,000. Pantera had the following balance sheet immediately after the purchase:Pantera CompanyBalance SheetJanuary 1, 20X1Assets Liabilities and EquityCash . . . . . . . . . . . . . . . . . . . . . . . . $ 51,000 Current liabilities . . . . . . . . . . . . . . . $ 80,000Accounts receivable . . . . . . . . . . . . 65,000 Bonds payable . . . . . . . . . . . . . . . . 200,000Inventory . . . . . . . . . . . . . . . . . . . . . 80,000 Common stock. . . . . . . . . . . . . . . . . 20,000Land. . . . . . . . . . . . . . . . . . . . . . . . . 100,000 Paid-in capital in excess of par . . . . 180,000Investment in Sader . . . . . . . . . . . . . 410,000 Retained earnings . . . . . . . . . . . . . . 446,000Buildings . . . . . . . . . . . . . . . . . . . . . 250,000Accumulated depreciation . . . . . . . (80,000)Equipment . . . . . . . . . . . . . . . . . . . . 90,000Accumulated depreciation . . . . . . . (40,000)Total assets. . . . . . . . . . . . . . . . . . $926,000 Total liabilities and equity . . . . . . $926,0001. Prepare a zone analysis and a determination and distribution of excess schedule for theinvestment in Sader.2. Complete a consolidated worksheet for Pantera Company and its subsidiary Sader Company