P$1-4$

Bargain purchase, allocation schedule, and balance sheet

The balance sheets for Pablo Corporation and Diego Corporation at December $31,2016$ are summarized as follows $($in thousands$)$:

$\backslash$table$[[,$Pablo Corporation,Diego Corporation$],[,$Book Value,Fair Value,Book Value,Fair Value$],[$Assets$],[$Cash$,$$$100,$$$100,$$$40,$$$40],[$Receivables$-$net,$50,50,30,30],[$Inventories$,130,150,80,100],[$Land$,50,100,30,50],[$Buildings$-$net,$150,200,70,100],[$Equipment$-$net,$100,150,50,75],[$Total assets,$${580}_{{?}_{?}},$$$750,$$${300}_{?},$$$395],[$Equities$],[$Accounts payable,$ $80,$$ $80,$$ $50,$$$50],[$Other liabilities,$100,90,75,45],[$Common stock, $$10$ par,$200,,100,],[$Other paid$-$in capital,$100,,25,],[$Retained earnings,$100,,50,],[$Total equities,$$580,,$$$300,]]$

On January $1,2017,$ Pablo Corporation acquired all of Diego Corporation's outstanding common stock for $$250,000.$ Pablo paid $$50,000$ in cash and issued a five$-$year, $10$ percent note for the balance. Diego was dissolved.

REQUIRED

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

Prepare a balance sheet for Pablo Corporation on January $1,2017,$ immediately after the acquisition.