P $1-4$

Allocation schedule and balance sheet

The balance sheets of Pub Corporation and Sun Corporation at December $31,2010,$ are summarized

with fair value information as follows $($in thousands$)$:

On January $1,2011,$ Pub Corporation acquired all of Sun's outstanding stock for $$300,000.$ Pub paid

$$100,000$ cash and issued a five$-$year, $12$ percent note for the balance. Sun was dissolved.

REQUIRED

Prepare a schedule to show how the investment cost is allocated to identifiable assets and liabilities.

Prepare a balance sheet for Pub Corporation on January $1,2011,$ immediately after the acquisition.