PJ Corporation pays $5,400,000 for an 80 percent interest in Sof Corporation on January 1, 2011, at which time the book value and fair value of Sof's net assets are as follows (in thousands):

REQUIRED: Prepare a schedule to allocate the fair value/book value differentials to Sof's netassets.

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Book Value Fair Value Current assets Equipment-net Other plant assets-net Liabilities Net assets $2,000 6,000 2,000 2,000 (3,000) (3,000) $5,000