Allocation schedule for fair value/book value differential and consolidated balance sheet at acquisition

Pop Corporation acquired 70 percent of the outstanding common stock of Son Corporation on January 1, 2016, for $350,000 cash. Immediately after this acquisition the balance sheet information for the two companies was as follows (in thousands)

Pop BV Book Value Fair Value

Assets

Cash $70 $40 $40

Receivables net 160 60 60

Inventories 140 60 100

Land 200 100 120

Buildings net 220 140 180

Equipmentnet 160 80 60

Investment in Sun 350 - -

Total Assets $1,300 $480

Liabilities and Stockholders Equity

Accounts payable $180 $160 $160

Other Liabilities 20 100 80

Common stock; $20 par 1,000 200

Retained earnings 100 20

Total Equities $1,300 $480

REQUIRED

1. Prepare a schedule to assign the difference between the fair value of the investment in Son and the book value of the interest to identifiable and unidentifiable net assets.

2. Prepare a consolidated balance sheet for Pop Corporation and Subsidiary at January 1, 2016.