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  3. on january 1, 2023, pack corp. paid $750,000 to pu

On January 1, 2023, Pack Corp. paid $750,000 to purchase 100% of the common stock...

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Accounting

On January 1, 2023, Pack Corp. paid $750,000 to purchase 100% of the common stock of Sack Company. On the date Pack acquired Sack (1/1/2023), the book value of Sack was $580,000. (Sack's Common Stock was $400,000, and Retained Earnings was $180,000 on the date of acquisition.) On the date of the acquisition Sack's Land was undervalued at $35,000; Equipment (20-year life) was undervalued at $100,000; Buildings (10-year life) were overvalued at $20,000; and Patents (5-year life)were undervalued at $15,000.

Part 1: Identify ALL of the elements of the investment.

Part II: Prepare an analysis of the book value element updating the balances from the beginning to the end of the year.

Part III: Prepare an analysis of the excess cost element updating the balances from the beginning to the end of the year.

Part IV: Complete the consolidation worksheet. Enter the necessary 12/31 consolidation entries. Label your entries (S,A,I,D,E) in narrow column beside entries. Enter formulas in the consolidation total column to complete the worksheet.

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