P4-5 Excess identifiable to net assets (alnoteq bas basl Nick NV acquired a 90 percent interest in Kim NV on January 1, 2014, by paying $9,000,000 cash. At the time, Kim NV's net assets were $9,000,000. It was also learned that some of Kim NV's net assets' book values were different from their fair values. Inventory was overvalued by $100,000, and building with remaining useful life of 6 years was undervalued by $600,000. Separate financial statements of Nick NV and Kim NV at December 31, 2014, are as follows (in thousands): Nick NV2 Kim NV Combined Income and Retained Earnings Statements for the Year Ended December 31 Sales Income from Kim NV Depreciation expenses Cost of sales Other expenses Net income Add: Beginning retained January 1 Deduct: Dividends Retained earnings December 31 $800 60.2 $ 9,800 450 252050 s bo$4,700 basbivi LE 15dms (6,100) times b (1,000) - (3,000) (500) LE (150) 1992 (700) 3,000 500 002 11,200 4,000 (600) old (100) $13,600 $ 4,400 100 no2 ni Instruoval