Prepare journal entries and balance sheet under push-down accountingBook values and fair v...

Prepare journal entries and balance sheet under push-down accounting

Book values and fair values of Sli Corporation’s assets and liabilities on December 31, 2010, are as follows (in thousands):

On January 1, 2011, Por Corporation acquires all of Sli’s capital stock for $2,500,000 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 imrnediately after the acquisition on January 1 under pushdown accounting.