E 3-6 Prepare journal entries and balance sheet under push-down accounting Book values and fair values of Sli Corporations assets and liabilities on December 31, 2010, are as follows (in thousands):

On January 1, 2011, Por Corporation acquires all of Slis capital stock for $5,000,000 cash. The acquisition is recorded using push-down accounting.

REQUIRED

1. Prepare the January 1 journal entry on Slis books to record push-down values.

2. Prepare a balance sheet for Sli Corporation immediately after the acquisition on January 1 under push-down accounting.

E 3-6 Prepare journal entries and balance sheet under push-down accounting Book values and fair values of Sli Corporation's assets and liabilities on December 31, 2010, are as follows (in thousands): Book Value Fair Value 280 280 Cash Accounts receivable-net 320 320 Inventories 320 400 800 Land 600 2,000 1,200 $5,000 Buildings-net Equipment-net 1,400 880 $3,800 Accounts payable Note payable Capital stock Retained earnings 400 400 560 600 2,000 840 $3,800 On January 1, 2011, Por Corporation acquires all of Sli's capital stock for $5,000,000 cash. The acquisition is recorded using push-down accounting. REQUIRED 1. Prepare the January 1 journal entry on Sli's books to record push-down values 2. Prepare a balance sheet for Sli Corporation immediately after the acquisition on January 1 under push- down accounting