REQUIRED1. Prepare a schedule to assign 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. P 3-2Allocation schedule for fair value/book value differential and consolidated bal-ance sheet at acquisitionPar Corporation acquired 70 percent of the outstanding common stock of Set Corporation on January 1,2011, for $700,000 cash. Immediately after this acquisition, the balance sheet information for the twocompanies was as follows (in thousands):SetPar Book ValueBook ValueFair ValueAssets$ 140320280$ 80120Cash$ 80Receivables-net120Inventories120200200280Land400240360Buildings-netEquipment-netInvestment in Set440320160120700Total assets$2,600$960$1,120Liabilities and Stockholders’ EquityAccounts payableOther liabilities$ 36040$ 320$320200400160Capital stock, $20 parRetained earningsTotal equities2,00020040$2,600$960REQUIRED1. Prepare a schedule to assign the difference between the fair value of the investment in Set and the bookvalue of the interest to identifiable and unidentifiable net assets.2. Prepare a consolidated balance sheet for Par Corporation and Subsidiary at January 1, 2011. PAR AND SET CORPORATIONSP 3-2Consolidated Balance Sheet|Book Value80 |120 |120 |200 |280 |160 |Set|Book ValueParSet|(in thousands)Fair Value140 |320 |280 |400 |440 |320 |Cash40 |60 |100 |120 |180 |Receivables-netInventoriesLandBuildings--netEquipment--net60 |Investment in Set700GoodwillTotal assets2,600960 |560 |320 |200 |400 |Accounts payable360160 |Other liabilities4080 |Capital stockRetained earningsTotal equities2,000 |200402,600960 |Noncontrolling interest

schedule to allocate the difference between the fair value of an investment inset and the book…

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 a

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 a

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 30E

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