Lambert Enterprises Acquired Callahan Company for $700,000 December 31, 2011

Essay

Lambert Enterprises acquired Callahan Company for $700,000 December 31, 2011. This amount exceeded the recorded value of Callahan Company's net assets by $150,000 on the acquisition date. The entire excess of cost over the book value of the net assets related to a piece of equipment owned by Callahan that had a remaining life of five years as of the acquisition date. The companies reported the following amounts for the 2010 and 2011:

Prepare the pro forma information for this acquisition required by SFAS No. 141.