Book values and fair values of Sli Corporation's assets and liabilities on December 31, 2010, are as follows (in thousands):

On January 1, 2011, Por Corporation acquires all of Sli's capital stock for $2,500,000 cash. The acquisition is recorded using push-down accounting.REQUIRED1. Prepare the January 1 journal entry on Sli's books to record push-down values.2. Prepare a balance sheet for Sli Corporation immediately after the acquisition on January 1 under pushdownaccounting.

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Book Value Fair Value $ 140 $ 140 Cash Accounts receivable-net Inventories 160 160 160 200 Land 300 700 400 1,000 Buildings-net Equipment-net 440 $1,900 600 $2,500 $ 200 $ 200 Accounts payable Note payable Capital stock Retained earnings 280 300 1,000 420 $1.900