Par Corporation acquired a 70 percent interest in Sol Corporation's outstanding voting common stock on January 1, 2011, for $490,000 cash. The stockholders' equity of Sol on this date consisted of $500,000 capital stock and $100,000 retained earnings. The difference between the fair value of Sol and the underlying equity acquired in Sol was assigned $5,000 to Sol's undervalued inventory, $14,000 to undervalued buildings, $21,000 to undervalued equipment, and $60,000 to goodwill. The undervalued inventory items were sold during 2011, and the undervalued buildings and equipment had remaining useful lives of seven years and three years, respectively. Depreciation is straight line. At December 31, 2011, Sol's accounts payable include $10,000 owed to Par. This $10,000 account payable is due on January 15, 2012. Par sold equipment with a book value of $15,000 for $25,000 on June 1, 2011. This is not an intercompany sale transaction. Separate financial statements for Par and Sol for 2011 are summarized as follows (in thousands):

REQUIRED: Prepare consolidation workpapers for Par Corporation and Sol for the year ended December 31, 2011. Use an unamortized excessaccount.

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Par Sol Combined Income and Retained Earnings Statements for the Year Ended December 31 $ 800 $700 Sales Income from Sol Gain on equipment Cost of sales 60.2 10 (400) (60) (300) (155) (160) 255.2 Depreciation expense Other expenses Net income Add: Retained earnings January 1 Deduct: Dividends Retained earnings December 31 (140) 100 300 (200) 100 (50) 355.2 $150 Balance Sheet at December 31 Cash $ 60 96 100 14 Accounts receivable-net Dividends receivable Inventories Other current assets Land Buildings-net Equipment-net Investment in Sol 70 150 70 100 30 50 140 100 160 570 330 515.2 Total assets $1,705.2 $850 $ 200 100 $ 85 20 Accounts payable Dividends payable Other liabilities 50 95 500 Capital stock, $10 par Retained earnings Total equities 1,000 355.2 150 $1,705.2 $850