P1-4 Allocation schedule and balance sheet The balance sheets of Pop Corporation and Son Corporation at December 31, 2015, are summarized with fair-value information as follows (in thousands): Pop Corporation Son Corporation Book Value Fair Value Book Value Fair Value Assets Cash $115 $115 $10 $10 Receivables - net 40 40 20 20 Inventories 120 150 50 30 Land 45 100 30 100 Buildings - net 200 300 100 150 Equipment - net 180 245 90 150 Total assets $700 $950 $300 $460 Equities Accounts payable $90 $90 $30 $30 Other liabilites 100 90 60 70 Capital stock, $10 par 300 100 Other paid-in capital 100 80 Retained earnings 110 30 Total equities $700 $300 On January 1, 2016, Pop Corporation acquired all of Son's outstanding stock for $300,000. Pop paid $100,000 cash and issued a five-year, 12 percent note for the balance. Son was dissolved. REQUIRED: 1. Prepare a schedule to show how the investment cost is allocated to identifiable assets and liabilities. 2. Prepare a balance sheet for Pop Corporation on January 1, 2016, immediately after the acquisition.