Given separate and consolidated balance sheets, reconstruct the schedule to allocate the fair value/book value differential
Pam Corporation purchased a block of Sap Company common stock for $520,000 cash on January 1, 2011. Separate company and consolidated balance sheets prepared immediately after the acquisition are summarized as follows (in thousands):
|
Pam Corporation and Subsidiary Consolidated Balance Sheet at January 1, 2011 |
|||
|
Pam |
Sap |
Consolidated |
|
|
Assets |
|||
|
Current assets |
$ 380 |
$200 |
$ 580 |
|
Investment in Sap |
520 |
— |
— |
|
Plant assets—net |
1,100 |
400 |
1,520 |
|
Goodwill |
— |
— |
110 |
|
Total assets |
$2,000 |
$600 |
$2,210 |
|
Equities |
|||
|
Liabilities |
$ 800 |
$ 80 |
$ 880 |
|
Capital stock, $20 par |
1,000 |
400 |
1,000 |
|
Retained earnings |
200 |
120 |
200 |
|
Noncontrolling interest |
— |
— |
130 |
|
Total equities |
$2,000 |
$600 |
$2,210 |
REQUIRED: Reconstruct the schedule to allocate the fair value/book value differential from Pam’s investment in Sap.