Picky Corporation paid $350,000 for an 70% interest in Sticky Corporation on January 1, 20x6 when the stockholders' equity of Sticky consisted of $200,000 capital stock and $140,000 retained earnings. The following assets of Sticky had fair values different from their book values when Picky acquired its interest: Book Value Fair Value Inventories (sold in 20X6) $ 50,000 $ 32,000 Equipment (5-year life at the time of combination) 600,000 680,000 Bonds Payable (matures on Dec 31, 20X9) (500,000) (532,000) Additional information Sticky's accounts payable at December 31, 20x8 included $15,000 owed to Picky. Picky and Sticky's financial statements for the year ended 12/31/20X8 are provided below: Picky Sticky (In 000's) (In 000's) Income Statement Sales $882.0 $300.0 Income from Sticky 29.4 Cost of sales (600.0) (150.0) Operating expenses (150.0) (75.0) Interest expense (30.0) (25.0) Net Income $131.4 $50.0 Retained Earnings Retained earnings 1/1/X8 Net income Dividends Retained earnings-12/31/X8 Balance Sheet Cash Accounts receivable Inventories Loan receivable from Sticky $105.0 131.4 (100.0) $136.4 $160.0 50.0 (20.) $190.0 $166.6 72.0 100.0 50.0 $15.0 20.0 60.0 $15.0 20.0 60.0 Balance Sheet Cash Accounts receivable Inventories Loan receivable from Sticky Land Equipment-net Dividends receivable Investment in Sticky Totals $166.6 72.0 100.0 50.0 160.0 240.0 7.0 380.8 $1,176.4 85.0 730.0 $910.0 $100.0 70.0 170.0 Accounts payable Dividends payable Bonds payable Loan payable to Picky Capital stock Retained earnings Totals $60.0 10.0 400.0 50.0 200.0 190.0 $910.0 700.0 136.4 $1,176.4 stion 22 Calculate the Difference (or Excess) yet vered its out of 20 1 x A B E % 93 Rag