Januar $ 45 P2-12 Allocation schedule and computations (excess cost over fair value) Pop Corporation acquired a 20 percent interest in Son Corporation on April 1, 2016, when it purchase 14.000 of Son's 20.000 outstanding shares in the open market at $13 per share. Additional costs of acque. ing the shares consisted of $10,000 legal and consulting fees. Son Corporation's balance sheets on 1 and April 1, 2016, are summarized as follows (in thousands): January 1 (per books) April 1 (per books) April 1 (fair values) $ 40 $ 45 Cash 60 35 Inventories 50 20 25 Other current assets 20 30 30 Land 50 100 95 Equipment-net 135 Total assets $230 $250 $300 Accounts payable $ 45 $ 40 $ 40 15 20 Other liabilities 20 Capital stock, $5 par 100 100 Retained earnings January 1 70 70 Current earnings Total liabilities and equity $230 $250 20 ADDITIONAL INFORMATION 1. The overvalued inventory items were sold in September 2016. 2. The undervalued items of equipment had a remaining useful life of four years on April 1, 2016. 3. Son's net income for 2016 was $80,000 ($60,000 from April to December 31, 2016). 4. On December 1, 2016, Son declared dividends of $2 per share, payable on January 10, 2017. 5. Any unidentified assets of Son are not amortized