Par Corporation paid $3,000,000 for an 80 percent interest in Son Corporation on January 1, 2011, when the book values and fair values of Son's assets and liabilities were as follows (in thousands):

REQUIRED1. Prepare a journal entry on Son's books to push down 80% of the values reflected in the purchase price (the parent-company-theory approach).2. Prepare a journal entry on Son's books to push down 100% of the values reflected in the purchase price (the entity-theory approach).3. Calculate the noncontrolling interest in Son on January 1, 2011, under parent-company theory.4. Calculate the noncontrolling interest in Son on January 1, 2011, under entitytheory.

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Book Value Fair Value $ 300 $ 300 Cash Accounts receivable-net 600 600 Inventories 800 2,400 200 200 600 Land Buildings-net Equipment-net 600 1,000 $3.500 $ 500 1,000 500 $4,600 $ 500 1,000 Accounts payable Long-term debt Capital stock, $1 par Retained earnings 800 1,200 $3,500