Tricia Corporation exchanged 40,000 previously unissued no par common shares for a 40 percent interest in Lisa Corporation on January 1, 2011. The assets and liabilities of Lisa on that date (after the exchange) were as follows (in thousands):

The direct cost of issuing the shares of stock was $20,000, and other direct costs of combination were $80,000.REQUIRED1. Assume that the January 1, 2011, market price for Tricia's shares is $24 per share. Prepare a schedule to allocate the investment cost/book value differentials.2. Assume that the January 1, 2011, market price for Tricia's shares is $16 per share. Prepare a schedule to allocate the investment cost/book value differentials. Assume that other direct costs were$0.

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Book Value Fair Value $ 200 $ 200 Cash Accounts receivable-net 400 400 Inventories 1,000 200 1,200 Land 600 Buildings-net Equipment-net 1,200 800 $3,800 800 1,000 $4,200 Total assets $1,800 Liabilities $1,800 1,400 Capital stock Retained earnings Total equities 600 $3,800