Camas X Shilt & Hours 27. On January 1, 2023, Palo Verde Corporation acquired 100 percent of the voting stock of Silverstone Corporation in exchange for $2,030,000 in cash and securities. On the acquisition date, Silverstone had the following balance sheet: Accounts payable Cash Accounts receivable Inventory Equipment (net) Trademarks Asset Equipment Royalty agreements Trademarks $ 23,000 97,000 140,000 1,490,000 850,000 $2,600,000 At the acquisition date, the book values of Silverstone's assets and liabilities were generally equivalent to their fair values except for the following assets: 2023 2024 Book Value Income Statement $1,490,000 -0- 850,000 Common stock Retained earnings Net Income $175,000 375,000 Fair Value $1,610,000 160,000 900,000 During the next two years, Silverstone has the following income and dividends in its own separately prepared financial reports to its parent. $1,050,000 800,000 750,000 $2,600,000 Palo Verde 200 0001 Remaining Useful Life 8 years 4 years Indefinite Dividends are declared and paid in the same period. The December 31, 2024, separate financial statements for each company follow. Parentheses indicate credit balances. Dividends $25,000 45,000 Silverstone $122000001

27. On January 1,2023, Palo Verde Corporation acquired 100 pereent of the voting stock of Silverstone Corporation in exchange for e. n an nn in mach and securities. On the acquisition date, Silverstone had the following balance sheet: At the acquisition date, the book values of Silverstone's assets and liabilities were generally equivalent to their fair values except for the following assets: During the next two years, Silverstone has the following income and dividends in its own separately prepared financial reports to its parent. Dividends are declared and paid in the same period. The December 31, 2024, separate financial statements for each company follow. Parentheses indicate credit balances. Dividends are declared and paid in the same period. The December 31, 2024, separate financial statements for each company follow. Parentheses indicate credit balances. a. Prepare Palo Verde's acquisition-date fairvalue allocation schedule for its investment in Silverstone. b. Show how Palo Verde determined its Deecmber 31, 2024, Investment in Silverstone balanec. c. Prepare a worksheet to determine the balances for Palo Verde's December 31, 2024, consolidated financial statements