P $3-4$

Given separate and consolidated balance sheets, reconstruct the schedule to

assign the fair value$/$book value differential

Pam Corporation purchased a block of Sap Company common stock for $$1,040,000$ cash on January $1,$

Separate$-$company and consolidated balance sheets prepared immediately after the acquisition

are summarized as follows $($in thousands$)$:

Pam Corporation and Subsidiary Consolidated Balance Sheet at January $1,2011$

REQUIRED: Reconstruct the schedule to assign the fair value$/$book value differential from Pam's invest$-$

ment in Sap.