P 3-2 Allocation schedule for fair value/book value differential and consolidated bal- ance sheet at acquisition Par Corporation acquired 70 percent of the outstanding common stock of Set Corporation on January 1, 2011, for $700,000 cash. Immediately after this acquisition, the balance sheet information for the two companies was as follows (in thousands): Set Par Book Value Book Value Fair Value $ Assets Cash Receivables-net Inventories Land Buildingsnet Equipmentnet Investment in Set Total assets $ 140 320 280 400 440 320 700 $2,600 $ 80 120 120 200 280 160 80 120 200 240 360 120 $960 $1,120 $ 320 160 Liabilities and Stockholders' Equity Accounts payable Other liabilities Capital stock, $20 par Retained earnings Total equities $ 360 40 2,000 200 $2,600 $320 200 400 40 $960 REQUIRED 1. Prepare a schedule to assign the difference between the fair value of the investment in Set and the book value of the interest to identifiable and unidentifiable net assets. 2. Prepare a consolidated balance sheet for Par Corporation and Subsidiary at January 1, 2011