Separate-company financial statements for Pun Corporation and its subsidiary, Son Company, at and for the year ended December 31, 2012, are summarized as follows (in thousands):

ADDITIONAL INFORMATION
1. Pun Corporation acquired 13,500 shares of Son Company stock for $15 per share on January 1, 2011, when Son's stockholders' equity consisted of $150,000 capital stock and $15,000 retained earnings.
2. Son Company's land was undervalued when Pun acquired its interest, and accordingly, $20,000 of the fair value/book value differential was assigned to land. Any remaining differential is goodwill.
3. Son Company owes Pun $5,000 on account, and Pun owes Son $5,000 on a note payable.
REQUIRED
Prepare consolidation workpapers for Pun Corporation and Subsidiary for the year ended December 31, 2012.

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Pun Combined Income and Retained Earnings Statement for the Year Ended December 31 $100 Income from Son Cost of sales Expenses 21.6 100.6) 181 (50) (26) (250) Net income Add: Retained earnings January 1 Deduct: Dividends Retained earnings December 31 Balance Sheet at December 31 $ 18 $ 15 Accounts receivable-net Dividends receivable from Son Note receivable from Pun Inventory Investment in Son 7.2 0 95 226.8 10 Buildings-net Equipment net Total assets 170 130 $792 $ 85 $ 10 Note payable to Son Dividends payable Capital stock, $10 par Retained earnings 150 Total equities