Par Corporation acquired 70 percent of the outstanding common stock of Set Corporation on January 1, 2011, for $350,000 cash. Immediately after this acquisition the balance sheet information for the two companies was as follows (in thousands):

REQUIRED1. Prepare a schedule to allocate 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.

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Set Fair Value Par Book Value Book Value Assets $ 40 $ 70 $ 40 Cash Receivables-net Inventories 160 140 200 220 60 60 60 100 120 180 Land 100 140 Buildings-net Equipment-net Investment in Set Total assets 160 350 80 60 $560 $480 $1.300 Liabilities and Stockholders' Equity Accounts payable Other liabilities Capital stock, $20 par Retained earnings Total equities S 180 20 $160 $160 80 100 200 1.000 100 $1.300 20 $480