Financial statements for Jack and Jill Corporations for 2011 are as follows (in thousands):

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Jack Jill Combined Income and Retained Earnings Statement for the Year Ended December 31, 2011 $130.0 0.0 Sales Income from Jill Gain on sale of land Depreciation expenses Other expenses Net income Add: Beginning retained earnings Deduct: Dividends Retained earnings December 31 $210.0 34.4 0.0 (40.0) (110.0) 94.4 145.4 (30.0) 209.8 10.0 (30.0) (60.0) 50.0 50.0 0.0 100.0 Balance Sheet at December 31, 2011 Current assets Plant assets $200 550 $170 350 Jack Jill Accumulated Depreciation Investment in Jill Total assets Current liabilities Capital stock Retained earnings Total equities (120.0) 329.8 959.8 150.0 600.0 209.8 959.8 (70.0) 0.0 450.0 50.0 300.0 100.0 450.0 Additional Information 1. Jack acquired an 80% interest in Jill on January 1, 2009, for $290,000, when Jill's stockholders' equity consisted of $300,000 capital stock and no retained earnings. The excess of investment fair value over book value of the net assets acquired related half to undervalued inventories (subsequently sold in 2009) and half to goodwill. 2. Jill sold equipment to Jack for $25,000 on January 1, 2010, when the equipment had a book value of $10,000 and a five-year remaining useful life (included in plant assets). 3. During 2011, Jill sold land to Jack at a profit of $10,000 (included in plant assets). 4. Jack uses the equity method to account for its invesment in Jill. REQUIRED 1. Please provide the supporting calculation for the excess. 2. Please show the allocation and amortization of the excess 3. Show supporting calculation of how you got your numbers 4. Show four Accounts for the Upstream transaction as done in class 5. Show four T Accounts for the Downstream transaction as done in class Jack Jill Combined Income and Retained Earnings Statement for the Year Ended December 31, 2011 $130.0 0.0 Sales Income from Jill Gain on sale of land Depreciation expenses Other expenses Net income Add: Beginning retained earnings Deduct: Dividends Retained earnings December 31 $210.0 34.4 0.0 (40.0) (110.0) 94.4 145.4 (30.0) 209.8 10.0 (30.0) (60.0) 50.0 50.0 0.0 100.0 Balance Sheet at December 31, 2011 Current assets Plant assets $200 550 $170 350 Jack Jill Accumulated Depreciation Investment in Jill Total assets Current liabilities Capital stock Retained earnings Total equities (120.0) 329.8 959.8 150.0 600.0 209.8 959.8 (70.0) 0.0 450.0 50.0 300.0 100.0 450.0 Additional Information 1. Jack acquired an 80% interest in Jill on January 1, 2009, for $290,000, when Jill's stockholders' equity consisted of $300,000 capital stock and no retained earnings. The excess of investment fair value over book value of the net assets acquired related half to undervalued inventories (subsequently sold in 2009) and half to goodwill. 2. Jill sold equipment to Jack for $25,000 on January 1, 2010, when the equipment had a book value of $10,000 and a five-year remaining useful life (included in plant assets). 3. During 2011, Jill sold land to Jack at a profit of $10,000 (included in plant assets). 4. Jack uses the equity method to account for its invesment in Jill. REQUIRED 1. Please provide the supporting calculation for the excess. 2. Please show the allocation and amortization of the excess 3. Show supporting calculation of how you got your numbers 4. Show four Accounts for the Upstream transaction as done in class 5. Show four T Accounts for the Downstream transaction as done in class