P3-1 Prepare a consolidated balance sheet at acquisition date On December 31, 2016, Ali Corporation acquired 90 percent of interest in Baba Corporation at book value in cash. Separate balance sheets before acquisition are summarized as follows (in thousands):

Ali Baba Assets Cash $550 $100 Accounts receivable 200 120 Inventories 440 80 Land 600 100 Buildings–net 750 60 Equipment–net 800 160

$3,340 $620 Liabilities and Stockholder’s Equity Accounts payable $180 $120 Common stock, $10 par 2,500 300 Retained earnings 660 200

$3,340 $620 REQuIRED: Prepare a consolidated balance sheet for Ali Corporation and Subsidiary at December 31, 2016.