Balance sheets for Pad Corporation and its 80 percent-owned subsidiary, Sit Company, at December 31, 2012, are summarized as follows (in thousands):

ADDITIONAL INFORMATION1. Pad Corporation paid $128,000 for its 80% interest in Sit on January 1, 2011, when Sit had capital stock of $100,000 and retained earnings of $10,000.2. At December 31, 2012, Pad's inventory included items on which Sit had recorded gross profit of $20,000.REQUIRED: Prepare comparative consolidated balance sheets for Pad Corporation and Subsidiary at December 31, 2012, under the traditional and entity theories ofconsolidation.

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Pad Sit Assets $ 20 $ 50 Cash Receivables-net 75 35 Inventories Plant assets-net 110 30 85 215 Investment in Sit 144 $170 Total assets $594 Liabilities and Stockholders' Equity Accounts payable Other liabilities S 80 $ 15 20 Total liabilities 100 Capital stock Retained earnings Stockholders' equity Total equities 300 100 194 50 494 150 170 $594