*P13-7A Robinson Corporation purchased all the outstanding common stock of Hoffman Plastics,

Price: $2.50


Robinson Corporation purchased all the outstanding common stock of Hoffman Plastics,
Inc. on December 31, 2008. Just before the purchase, the condensed balance sheets of the
two companies appeared as follows

			Robinson Corporation	Hoffman Plastics, Inc.
Current assets			1,480,000	435,500
Plant and equipment (net)			2,100,000	676,000
			3,580,000	1,111,500
Current liabilities			578,000	92,500
Common stock			1,950,000	525,000
Retained earnings			1,052,000	494,000
			3,580,000	1,111,500

Robinson used current assets of $1,225,000 to acquire the stock of Hoffman Plastics.The excess
of this purchase price over the book value of Hoffman Plastics’ net assets is determined to be
attributable $86,000 to Hoffman Plastics’ plant and equipment and the remainder to goodwill.

Instructions
(a) Prepare the entry for Robinson’s acquisition of Hoffman Plastics, Inc. stock.
(b) Prepare a consolidated worksheet at December 31, 2008.
(c) Prepare a consolidated balance sheet at December 31, 2008.