The balance sheets of Pub Corporation and Sun Corporation at December 31, 2010, are summarized with fair value information as follows (in thousands):

On January 1, 2011, Pub Corporation acquired all of Sun's outstanding stock for $300,000. Pub paid $100,000 cash and issued a five-year, 12 percent note for the balance. Sun was dissolved.REQUIRED1. Prepare a schedule to show how the investment cost is allocated to identifiable assets and liabilities.2. Prepare a balance sheet for Pub Corporation on January 1, 2011, immediately after theacquisition.

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Sun Corporation Pub Corporation Book Value Fair Value Book Value Fair Value Assets Cash S115 S 10 $ 10 $115 Receivables-net Inventories Land Buildings-net Equipment-net 40 40 150 100 20 50 20 30 120 45 30 100 100 150 150 200 300 245 $950 180 90 S700 $300 $460 Total assets Equities Accounts payable Other liabilities Capital stock, $10 par Other paid-in capital Retained earnings Total equities $ 90 100 $ 90 90 $ 30 60 $ 30 70 100 80 300 100 110 30 $700 $300