P 3-2 Allocation schedule for fair value/book value differential and consolidated bal- ance sheet at acquisition Par Corporation acquired 70 percent of the outstanding common stock of Set Corporation on January 1, 2011, for $700,000 cash. Immediately after this acquisition, the balance sheet information for the two companies was as follows (in thousands): Set Par Book Value Book Value Fair Value Assets Cash $ 140 $ 80 $ 80 Receivables-net 320 120 120 Inventories 280 120 200 Land 400 200 240 Buildings-net 440 280 360 Equipment-net 320 160 120 Investment in Set 700 Total assets $2,600 $960 $1,120 Liabilities and Stockholders' Equity Accounts payable $ 360 $320 $ 320 Other liabilities 40 200 160 Capital stock, $20 par 2,000 400 Retained earnings 200 Total equities $2,600 $960 40 REQUIRED 1. Prepare a schedule to assign the difference between the fair value of the investment in Set and the book value of the interest to identifiable and unidentifiable net assets. 2. Prepare a consolidated balance sheet for Par Corporation and Subsidiary at January 1, 2011