Financial statements for Par Corporation and its 75 percent-owned subsidiary, Sal Corporation, for 2012 are summarized as follows (in thousands):

Par Corporation acquired its interest in Sal at book value during 2009, when the fair values of Sal's assets and liabilities were equal to recorded book values.ADDITIONAL INFORMATION1. Par uses the equity method for its investment in Sal.2. Intercompany sales of merchandise between the two affiliates totalled $50,000 during 2012. All intercompany balances have been paid except for $10,000 in transit from Sal to Par at December 31, 2012.3. Unrealized profits in Sal's inventories of merchandise acquired from Par were $12,000 at December 31, 2011, and $15,000 at December 31, 2012.4. Sal sold equipment with a six-year remaining useful life to Par on January 2, 2010, at a gain of $24,000. The equipment is still in use by Par.5. Par sold a plant to Sal on July 1, 2012. The land was sold at a gain of $10,000 and the building, which had a remaining useful life of 10 years, at a gain of $20,000.6. Sal purchased $100,000 par of Par 10 percent bonds in the open market for $94,000 plus $5,000 accrued interest on December 31, 2012. Interest is paid semiannually on January 1 and July 1, and the bonds mature on January 1, 2017.REQUIRED: Prepare a consolidation workpaper for Par Corporation and Subsidiary for the year ended December 31,2012.

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Sal Par Combined Income and Retained Earnings Statement for the Year Ended December 31, 2012 Sales $630 $500 Gain on plant Income from Sal Cost of goods sold Depreciation expense Interest expense Other expenses Net income 30 52 (300) (350) (76) (20) (40) (46) 220 (60) 100 Add: Beginning retained earnings Deduct: Dividends 150 100 (160) $210 (80) $120 Retained earnings December 31 Balance Sheet at December 31, 2012 $ 27 $81 Cash Bond interest receivable Other receivables-net 40 30 Inventories 80 50 Land 90 150 70 180 Buildings-net Equipment-net Investment in Sal 140 90 343 Investment in Par bonds 94 $870 $600 Total assets $ 50 Accounts payable Bond interest payable 10% bonds payable $80 10 200 Common stock 400 400 Retained earnings Total equities 210 120 $870 $600