Prepare allocation schedule with book value greater than fair valuePJ Corporation pays $5,...

Prepare allocation schedule with book value greater than fair value

PJ Corporation pays $5,400,000 for an 80 percent interest in Sof Corporation on January 1, 2011, at which time the book value and fair value of Sof s net assets are as follows (in thousands):

REQUIRED: Prepare a schedule to allocate the fair value/book value differentials to Sof s net assets.