Par Corporation acquired a 70 percent interest in Sul Corporation's outstanding voting common stock on January 1, 2011, for $490,000 cash. The stockholders' equity (book value) of Sul on this date consisted of $500,000 capital stock and $100,000 retained earnings. The differences between the fair value of Sul and the book value of Sul were assigned $5,000 to Sul's undervalued inventory, $14,000 to undervalued buildings, $21,000 to undervalued equipment, and $40,000 to previously unrecorded patents. Any remaining excess is 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. The patents have a 40-year life. Depreciation is straight line. At December 31, 2011, Sul's accounts payable include $10,000 owed to Par. This $10,000 account payable is due on January 15, 2012. Separate financial statements for Par and Sul for 2011 are summarized as follows (in thousands):

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

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Par Sul Combined Income and Retained Earnings Statements for the Year Ended December 31 $ 800 $700 Sales Income from Sul Cost of sales 59.5 (300) (400 Depreciation expense Other expenses Net income Add: Retained earnings January I Deduct: Dividends (154) (160) (60 (140 100 100 245.5 300 (50 $150 (200) Retained earnings December 31 $ 345.5 Balance Sheet at December 31 Cash Accounts receivable-net $ 60 86 100 70 Dividends receivable Inventories 14 150 100 Other current assets Land 70 50 30 100 Buildings-net Equipment-net Investment in Sul Total assets 140 570 160 330 514.5 $1.694.5 $850 $ 200 Accounts payable Dividends payable Other liabilities Capital stock, $10 par Retained earnings Total equities $ 85 100 49 20 95 1,000 345.5 500 150 S850 $1.694.5