December 31, 2012, trial balances for Pledge Company and its subsidiary Stom Company follow:

Pledge Company purchased 72,000 shares of Stom Company’s common stock on January 1, 2009, for $300,000. On that date, Stom Company’s stockholders’ equity was as follows:
Common Stock, $1 par value..........$100,000
Other Contributed Capital............80,000
Retained Earnings...............160,000
Treasury Stock (10,000 shares at cost) ......(20,000)
Total....................$320,000

Additional information:
1. Receivables of Pledge Company include a $55,000, 12% note receivable from Stom Company.
2. Interest amounting to $6,600 has been accrued by each company on the note payable from Stom to Pledge. Stom Company has not yet paid this interest.
3. The difference between book value and the value implied by the purchase price relates to subsidiary land.

Required:
Prepare a consolidated statements workpaper for the year ended December 31,2012.

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Pledge Stom 184,60072,000 180,000 212,000 Cash and Marketable Securities Receivables (net) Inventorv Investment in Stom Company Plant and Equipment (net Land Cost of Goods Sold Operating Expenses Dividends Declared Treasury Stock (10,000 shares at cost) 301,000 75,000 185,000 65,000 30,000 20,000 $2,009,600 $1,140,000 182,000 214,000 300,000 309,000 85,000 460,000 225,000 50,000 Total Debits Accounts Payable Accrued Expenses Notes Payable Common Stock, $1 par value Other Cotributed Capital Retained Eanings, 1/1 Sales Dividend and Interest Income 96,000 79,000 18,000 200,000 100,000 80,000 320,000 340,000 3,000 $2,009,600 1140,000 1,000 100,000 300,000 150,000 422,000 880,000 30,600 Total Credits