An Introduction to Consolidated Financial Stat Pam Corporation and Subsidiary Consolidated Balance Sheet at January 1, 2016 No Consolidated s 1.160 3,040 Date Current assets Investment in Sun Plant assets-net s 760 1,040 2.200 $ 400 Total assets 51,600 2,000 400 S 160 Capital stock, $20 par $1.760 2,000 Retained carnings 240 ng imerest Total equities REQUIRED: Reconstract the schedule to assign the fair value/book value differential from Pam's investment in Sun. P3-5 Prepare a consolidated balance shoet one year after acquisition On January 1.2016, Mignonne Corporation paid $2.850,000 in cash for a 100 percent interest in Petite Corporation when Petite's common stock was at $2,000,000 and retained earnings were at $300.000. Equipment with a five-year remaining iseful life was undervalued by $350.000. Comparative balance sheer data for Mignonne snd Petite Corporations at December 31, 2016. are as follows (in thousands): Mignoune Petite S104 Cash Receivables-ner Inventories 300 500 2.786 250 850 300 1,5001,200 Equipment-net Investment in Petite $6,090$2.670 Equities Accounts payable Common stock, $10 par Retained earnings $120 4,0002,000 550 1,590 $6,090 $2,670 REQUIRED: Prepare a consolidated balance sheet for Mignonne Corporation and Subsidiary at December 31, 2016 P3-6 Consolidation after acquisition Harrison PLC acquires 80 percent of David PLC for $2,080,000 on January 1, 2014. The book values of David PLC's assets and liabilities are equal to the fair values. David PLC reports net income of $500,000 during the year. Dividends of $200,000 are declared by David PLC on December 20. These dividends are to be paid next year. The balance sheets of Harrison PLC and David PLC at December 31, 2014 are as follows (in thousands)