Problem No: 1 (20 - 25 minutes) Par Corporation acquired 70 percent of the outstanding common stock of Set Corporation on January 1, 2011, for $350,000 cash. Immediately after this acquisition the balance sheet information for the two companies was as follows (in thousands): Set Par Book Book Fair Value Value Value Assets Cash $ 70 $ 40 40 Receivables-net 160 60 60 Inventories 140 100 Land 200 100 120 Buildings-net 220 140 180 Equipment-net 160 80 60 Investment in Set 350 Total assets $1,300 $ 480 $ 560 Liabilities and Stockholders' Equity Accounts payable $ 180 $ 160 $ 160 Other liabilities 100 80 Capital stock, $20 par 1000 200 Retained earnings 100 20 Total equities $1,300 $ 480 60 20 REQUIRED 1. Prepare a schedule to allocate 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