Below are Financial statements for Patriot and Sinar Jaya Corporations for 2018 (in thousands):

Patriot Sinar Jaya

Combined Income and Retained Earnings Statement

for the Year Ended December 31, 2011

Sales $210 $130

Income from Sun 34.4

Gain on sale of land 10

Depreciation expense (40) (30)

Other expenses (110) (60)

Net income 94.4 50

Add: Beginning retained earnings 145.4 50

Deduct: Dividends (30)

Retained earnings December 31 $209.8 $100

Balance Sheet at December 31, 2011

Current assets $200 $170

Plant assets 550 350

Accumulated depreciation (120) (70)

Investment in Sun 329.8

Total assets $959.8 $450

Current liabilities $150 $ 50

Capital stock 600 300

Retained earnings 209.8 100

Total equities $959.8 $450

ADDITIONAL INFORMATION:

1. On January 2, 2016, Patriot acquired an 80 percent interest in Sinar Jaya, for $280,000, when Sinar Jayas stockholders equity consisted of $300,000 capital stock and no retained earnings. The excess of investment fair value over book value of the net assets acquired related 60 percent to undervalued inventories (subsequently sold in 2016) and 40 percent to goodwill.

2. On January 1, 2017 Sinar Jaya sold equipment to Patriot for $35,000, when the equipment had a book value of

$10,000 and a five-year remaining useful life (included in plant assets).

3. During 2018, Sinar Jaya sold land to Patriot at a profit of $15,000 (included in plant assets).

4. Patriot uses the equity method to account for its investment in Sun.