Book values and fair values of Son Corporation's assets and liabilities on December 31, 2015, are as follows (in thousands):

On January 1, 2016, Pop Corporation acquires all of Son's capital stock for $10,000,000 cash. The acquisition is recorded using push-down accounting.
Required
1. Prepare the January 1 journal entry on Son's books to record push-down values.
2. Prepare a balance sheet for Son Corporation immediately after the acquisition on January 1 under push-down accounting?

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Book Value Fair Value Cash Accounts receivable-net Inventories Land Buildings-net Equipment-net $560 640 800 1,600 4,000 2,400 $7,600 10,000 $ 800 1,200 $560 640 640 1,200 2,800 1,760 Accounts payable Note payable Capital stock Retained earnings $800 1,120 4,000 1,680 $7,600