Pop Corporation exchanged 40,000 previously unissued no par common shares for a 40 percent interest in Son Corporation on January 1, 2016. The assets and liabilities of Son on that date (after the exchange) were as follows (in thousands):

The direct cost of issuing the shares of stock was $20,000, and other direct costs of combination were $80,000.
Required
1. Assume that the January 1, 2016, market price for Pop's shares is $24 per share. Prepare a schedule to allocate the investment cost/book value differentials.
2. Assume that the January 1, 2016, market price for Pop's shares is $16 per share. Prepare a schedule to allocate the investment cost/book value differentials. Assume that other direct costs were $0?

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Book Value Fair Value Cash Accounts receivable-net Inventories Land Buildings-net Equipment-net $200 400 1,000 200 1,200 800 $3,800 $ 200 400 1,200 600 800 1,000 $4,200 Total assets Liabilities Capital stock Retained earnings $1,800 1,400 600 $3,800 $1,800 Total equities