Identifiable assets and liabilities

Reference no: EM131033675

1. 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.

REQUIRED

1. 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 the acquisition.

Reference no: EM131033675

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