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1) Plant Inc. a calendar year reporting company acquired 80% of Seed Inc.s outstanding common stock for $ 484,000 on Dec. 31, 2018, when the fair value of Seeds Net Assets was $ 568,000. The following data summarize the fair value calculation: (2 Marks)

Book Value Element	Amount $	Life Remaining
Common Stock	150,000
Retained Earnings	135,000
Under Or-Over Valuation
Inventory	(9700)	2 Months
Land	48,000	Indefinite
Equipment	96,000	8 Years
Covenant Not-To Compete	40,000	5 Years
Goodwill Element	108,700	Indefinite
Total Cost	568,000

Plant Inc. & Seed Inc.

Worksheet

As at Dec. 31, 2018

Balance Sheet	Plant ($)	Seed ($)
Cash	148,000	47,000
Account Receivable	103,500	118,000
Inventory	152,500	126,000
Investment in Seed -
Book Value	228,000
Excess Cost	226,400
Land	168,000	127,000
Building & Equipment	400,000	309,000
Accumulated Depreciation	-16,000	-102,000
Total Assets	1,410,400	625,000
Payable & Accruals	265,400	120,000
Long Term Assets	290,000	220,000
Common Stock	450,000	150,000
Retained Earnings	405,000	135,000
Total Liabilities & Equity	1,410,400	625,000

You are required to

(a) Prepare an Analysis of the Investment Account Through Dec. 31, 2018. Show clearly Book Value and Excess Value calculation by preparing tables.

(b) Prepare all consolidation (Elimination Entries) as of Dec. 31, 2018.

(c) Prepare a Consolidated Worksheet as at Dec. 31, 2018.

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