Q1) On January 1, 2009, Pampas Company obtained 80% of Smith Company's common stock and 40% of its non-voting, cumulative preferred stock. Consideration transferred by Pampas was $1,200,000 for common and $124,000 for preferred. Any excess acquisition-date fair value over book value is considered patents and amortized over 10 years. Capital structure of Smith immediately previous to acquisition is:
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Common stock, $10 par value
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$500,000
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Preferred Stock, 6% cumulative, $10 par value
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$300,000
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Additional paid-in capital
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$200,000
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Retained earnings
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$500,000
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Total Stockholders' Equity
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$1,500,000.00
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Make allocations schedule and S&A consolidation journal entry for December 31, 2009 consolidation worksheet.