Adjusted trial balances for Pal and Sor Corporations at December 31, 2011, are as follows (in thousands):

Question:

Pal purchased all the stock of Sor for $800,000 cash on January 1, 2011, when Sor's stockholders' equity consisted of $100,000 capital stock and $180,000 retained earnings. Sor's assets and liabilities were fairly valued except for inventory that was undervalued by $40,000 and sold in 2011, and plant assets that were undervalued by $80,000 and had a remaining useful life of four years from the date of the acquisition.

REQUIRED:

Prepare a consolidated balance sheet for Pal Corporation and Subsidiary at December 31, 2011.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...