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  3. 3. on january 1, 2020, vaden co. acquired 100% of

3. On January 1, 2020, Vaden Co. acquired 100% of Conor, Inc. for $750,000 in...

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Accounting

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3. On January 1, 2020, Vaden Co. acquired 100% of Conor, Inc. for $750,000 in a purchase transaction. The new subsidiary reported common stock on that date of $420,000 with retained earnings of $252,000. A building was undervalued in the company's financial records by $50,000. The building had a ten-year remaining life. In addition, there was an unrecorded patent valued at $20,000 with a five- year remaining life. Any additional value in excess of book value is attributed to Goodwill. During 2020, Conor earned $105,000 in Net Income and paid out $54,600 in cash dividends. Required: a. Prepare a schedule allocating the purchase price of Conor and computing any required excess amortization. b. Assuming that Vaden uses the equity method to account for its holdings in Conor, prepare the consolidation entries needed at December 31, 2020

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