CASE T'I'PE I: Prepare an allocation schedule, compute income and the investment balance Quake Corporation paid $La,i} for a 3i] percent interest in Tremor Corporation's outstanding voting stock on Januarv 1, Hill. The book values and fair values ofTremor's assets and liabilities on January:r 1, along with amortization data, are as follows {in thousands}: Book 1value Fair 1l.|"alue Cash 5 4m] 13 mo Accou nts reoeiva olenet Ir'i] T Inventories [sold in Hill] 1.00:] 1,2011] Either current assets EDD 200 Land SDI] 1,?Di] Buildingsnet {IDveer remaining life] 1,500 LUBE] Equ ipmentnet [Tvear rem ain ing life} 1,2 soc Total assets $5,903 SETH] Accounts payable 3 EDI] 33 SEE] Either current liabilities EDI] Z Bonds payable {due Januarv 1, 21316: 1.00:] 1,1Eii] Capital stock, 51D par 3m Retained earnings EDD Total equities 55,91!!! Tremor Corporation re ported net income of SLZDIDHI] for Hill and paid dividends of S. REQUIRED I Prepare a schedule to allocate the investment fair valuesfbook value differentials relating to uake's investment in Tremo r I Calculate uake's income from Tremorfor Kill. I Determine the balance of Quake's Investment in Tremor account at December 31, 2011