In the first pic, you see retained earnings for the acquirer (12K) and the target company (4K)
The acquirer pays 8,000 to get an 80% interest in the target company. So retained earning should sum up, at least partially, right? How come the retained earnings on the new balance sheet is still only $12K?
In your example you paid 3.5 million for net assets worth 3 million (= 9 million – 6 million). That extra 0.5 million has to be allocated either to identifiable assets or to goodwill. Either way, the new assets are:
10 million + 9 million – 3.5 million + 0.5 million = 16 million