Punca Company purchased 85% of the common stock of Surrano Company on July 1, 2022, for a cash payment of $590,000. December 31, 2022, trial balances for Punca and Surrano were:

Surrano Company declared a $50,000 cash dividend on December 20, 2022, payable on January 10, 2023, to stockholders of record on December 31, 2022. Punca Company recognized the dividend on its declaration date. Any difference between book value and the value implied by the purchase price relates to subsidiary land, included in property and equipment. Income is earned evenly throughout the year.

Required:
Prepare a consolidated statements workpaper at December 31, 2022.

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Current Assets Treasury Stock at Cost, 500 shares Investment in Surrano Company Property and Equipment Cost of Goods Sold Other Expenses Dividends Declared Total Accounts and Notes Payable Dividends Payable Capital Stock, $5 par value Other Contributed Capital Retained Earnings, 1/1 Sales Dividend Income Total Punca $ 150,000 590,000 1,250,000 1,540,000 415,000 $3,945,000 $ 277,500 270,000 900,000 355,000 2,100,000 42,500 $3,945,000 Surrano $ 180,000 48,000 -0- 750,000 759,000 250,000 50,000 $2,037,000 $ 150,000 50,000 40,000 250,000 241,000 1,300,000 6,000 $2,037,000