Pan Corporation purchased 90 percent of Son Corporation's outstanding stock for $7,200,000 cash on January 1, 2011, when Son's stockholders' equity consisted of $4,000,000 capital stock and $1,400,000 retained earnings. The excess was allocated $1,600,000 to undervalued equipment with an eight-year remaining useful life and $1,000,000 to goodwill. Son's net income and dividends for 2011 were $1,000,000 and $400,000, respectively. Comparative balance sheet data for Pan and Son Corporations at December 31, 2011, are as follows (in thousands):

REQUIRED: Prepare consolidated balance sheet workpapers for Pan Corporation and Subsidiary on December 31,2011.

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Pan Son $ 400 Cash 600 1,200 Receivables-net 800 Dividends receivable 180 1,400 Inventory Land 1,200 1,200 1,400 2.000 1,600 Buildings-net Equipment-net Investment in Son 4,000 3,000 7.560 $7.400 S19.140 $ 600 $1,200 Accounts payable Dividends payable Capital stock Retained earnings 1,000 14,000 200 4,000 2.000 3.540 $7,400 $19.140