Agung Corporation acquires 60,000 shares of outstanding voting common stock of Bagus Corporation for $780,000 on...

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Agung Corporation acquires 60,000 shares of outstanding voting common stock of Bagus Corporation for $780,000 on July 1, 2016, when Bagus' 100,000 shares of outstanding common stock was $1,000,000, preferred shared stock of 1,000 was $100,000, and its retained earnings were $250,000. Financial state- ments for Agung Corporation and Subsidiary for 2016 are summarized as follows (in thousands): Balance Sheet at December 31 Agung Bagus Cash Inventories Other current assets $150 $75 330 300 1,200 500 Equipment-net Investment in Bagus Total assets 1,000 777 $3.627 700 $1,405 Current liabilities Preferred stock, $100 par Common stock, $10 par Retained earnings $221 $50 100 1,000 255 2,600 806 Total equities $3,627 $1,405 The stockholders' equity of Bagus for 2016 is as follows (in thousands): 10% preferred stock, cumulative, nonparticipating. S100 par, with no dividends in arrears Common stock, $10 par Other paid-in capital Retained earnings Total stockholders' equity $100 1,000 200 255 $1,355 Bagus sells merchandise that cost $50,000 for $70,000 to Agung after the acquisition in 2016, and half of the inventory is still included in Agung's ending balance of inventory. Bagus' net income for 2016 is $60,000, earned proportionally throughout the year, and it paid dividends of $25,000 on September 1, 2016. Agung Corporation acquires 60,000 shares of outstanding voting common stock of Bagus Corporation for $780,000 on July 1, 2016, when Bagus' 100,000 shares of outstanding common stock was $1,000,000, preferred shared stock of 1,000 was $100,000, and its retained earnings were $250,000. Financial state- ments for Agung Corporation and Subsidiary for 2016 are summarized as follows (in thousands): Balance Sheet at December 31 Agung Bagus Cash Inventories Other current assets $150 $75 330 300 1,200 500 Equipment-net Investment in Bagus Total assets 1,000 777 $3.627 700 $1,405 Current liabilities Preferred stock, $100 par Common stock, $10 par Retained earnings $221 $50 100 1,000 255 2,600 806 Total equities $3,627 $1,405 The stockholders' equity of Bagus for 2016 is as follows (in thousands): 10% preferred stock, cumulative, nonparticipating. S100 par, with no dividends in arrears Common stock, $10 par Other paid-in capital Retained earnings Total stockholders' equity $100 1,000 200 255 $1,355 Bagus sells merchandise that cost $50,000 for $70,000 to Agung after the acquisition in 2016, and half of the inventory is still included in Agung's ending balance of inventory. Bagus' net income for 2016 is $60,000, earned proportionally throughout the year, and it paid dividends of $25,000 on September 1, 2016.

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