Book values and fair values of Sli Corporation’s assets and liabilities on December 31, 2010, are as follows (in thousands):Book Value Fair ValueCash …………………………. $ 280 ………. $ 280Accounts...

Book values and fair values of Sli Corporation’s assets and liabilities on December 31, 2010, are as follows (in thousands): Book Value Fair Value Cash …………………………. $ 280 ………. $ 280 Accounts receivable-net …….. 320 …………. 320 Inventories ……………………. 320 …………. 400 Land ………………………….. 600 …………. 800 Buildings-net ……………… 1,400 ………. 2,000 Equipment-net ……………… 880 ……….. 1,200 $3,800 ……… $5,000 Accounts payable …………… $ 400 ………. $ 400 Note payable ………………….. 560 ………… 600 Capital stock ………………… 2,000 Retained earnings …………….. 840 $3,800 On January 1, 2011, Por Corporation acquires all of Sli’s capital stock for $5,000,000 cash. The acquisition is recorded using push-down accounting. REQUIRED 1. Prepare the January 1 journal entry on Sli’s books to record push-down values. 2. Prepare a balance sheet for Sli Corporation immediately after the acquisition on January 1 under pushdown accounting. View Solution:

Book values and fair values of Sli Corporation s assets and