Use the preceding information for Pantera’s purchase of Sader common stock. Assume
Pantera purchased 100% of the common stock for $410,000. Pantera had the following balance
sheet immediately after the purchase:

Pantera Company
Balance Sheet
January 1, 20X1
Assets Liabilities and Equity
Cash . . . . . . . . . . . . . . . . . . $ 51,000 Current liabilities . . . . . . . . . . . $ 80,000
Accounts receivable . . . . . . . . . 65,000 Bonds payable . . . . . . . . . . . . . 200,000
Inventory . . . . . . . . . . . . . . . . 80,000 Common stock . . . . . . . . . . . . . 20,000
Land . . . . . . . . . . . . . . . . . . 100,000 Paid-in capital in excess of par . . 180,000
Investment in Sader . . . . . . . . . 410,000 Retained earnings . . . . . . . . . . . 446,000
Buildings . . . . . . . . . . . . . . . . 250,000
Accumulated depreciation . . . . . (80,000)
Equipment . . . . . . . . . . . . . . . 90,000
Accumulated depreciation . . . . . (40,000)
Total assets . . . . . . . . . . . . . $ 926,000 Total liabilities and equity . . . . $926,000

1. Prepare a zone analysis and a determination and distribution of excess schedule for the investment in Sader.
2. Complete a consolidated worksheet for Pantera Company and its subsidiary Sader Company as of January 1, 20X1.
**There are two tabs on the excel spreadsheet**

  • Posted: 6 years ago
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