3. Sakti Corporation acquired its 20 percent interest in Kunthi Corporation for $25,000 on January 1, 2015, when Kunthi's common stock and retained earnings were $250,000 and $150,000, respectively. 4. Pandu's ending balance of inventory at December 31, 2015, includes unrealized profits of $10,000 from Sakti. 5. Sakti sold merchandise that cost $20,000 for $30,000 to Kunthi in 2016. 6. Pandu and Sakti did not employ the equity method for the intercompany transaction, and an excess of fair value over book value was acquired. Both corporations employed only the equity method for their investments. REQUIRED: Prepare a consolidation workpaper for the year ended December 31, 2016. 3. Sakti Corporation acquired its 20 percent interest in Kunthi Corporation for $25,000 on January 1, 2015, when Kunthi's common stock and retained earnings were $250,000 and $150,000, respectively. 4. Pandu's ending balance of inventory at December 31, 2015, includes unrealized profits of $10,000 from Sakti. 5. Sakti sold merchandise that cost $20,000 for $30,000 to Kunthi in 2016. 6. Pandu and Sakti did not employ the equity method for the intercompany transaction, and an excess of fair value over book value was acquired. Both corporations employed only the equity method for their investments. REQUIRED: Prepare a consolidation workpaper for the year ended December 31, 2016