"Allen Company acquired percent of Bradford Company's voting stock on January by issuing shares of its $ par
value common stock having a fair value of $ per share As of that date, Bradford had stockholders' equity totaling $
Land shown on Bradford's accounting records was undervalued by $ Equipment with a fiveyear remaining life was
undervalued by $ A secret formula developed by Bradford was appraised at $ with an estimated life of years.
The following are the separate financial statements for the two companies for the year ending December There were no
intraentity payables on that date. Credit balances are indicated by parentheses.
a Complete the table to show the allocation of the fair value in excess of book value.
a Complete the table to show the computation for Subsidiary Earnings.
b Complete the worksheet by consolidating the financial information for these two companies.
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