Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng

Exercise 21

Reverse acquisition. Private Company acquired a controlling interest in Public Company. Private Company had the following balance sheet on the acquisition date:
The shareholders of Private Company requested 300 Public Company shares in exchange for all of their 100 shares. This was an exchange ratio of 3 to 1. The fair value of a share of Public Company was $25.
Prepare an appropriate value analysis and a determination and distribution of excess schedule.