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

Receivablesnet 320 120 120

Inventories 280 120 200

Land 400 200 240

Buildingsnet 440 280 360

Equipmentnet 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 40

Total equities $2,600 $960

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.