it's a question in the book

CE P 4-3 Workpapers in year of acquisition (goodwill and intercompany transactions) Pan Corporation acquired a 75 percent interest in Saf Corporation on January 1, 2011. Financial state- ments of Pan and Saf Corporations for the year 2011 are as follows (in thousands). Pan Sar Combined Income and Retained Earnings Statements for the Year Ended December 31 Sales Income from Sal $800 $200 Cost of sales 27.6 Other expenses (500) (100) Net income (194) (52) Add: Retained earnings January 1 133.6 48 360 68 Deduct: Dividends (100) (32) Retained earnings December 31 S393.6 S 84 Balance Sheet at December 31 Cash $ 106 Accounts receivable--net 172 40 Dividends receivable from Saf 12 Inventories 190 20 Note receivable from Pan 10 Land 130 60 Buildings--net 340 160 Equipment-net 260 100 Investment in Saf 363.6 Total assets $1.573.6 $420 Accounts payable S 170 $ 20 10 Note payable to Saf Dividends payable 16 Capital stock. $10 par 1.000 300 Retained earnings 393.6 84 Total equities $1,573.6 $420 $ 30 P 4-3 Workpapers in year of acquisition (goodwill and intercompany transactions) Pan Corporation acquired a 75 percent interest in Saf Corporation on January 1, 2011. Financial state- ments of Pan and Saf Corporations for the year 2011 are as follows (in thousands): Pan Saf Combined Income and Retained Earnings Statements for the Year Ended December 31 Sales $800 Income from Saf $200 Cost of sales 27.6 Other expenses (500) (100) (194) Net income (52) 133.6 48 Add: Retained earnings January 1 360 68 Deduct: Dividends (100) (32) Retained earnings December 31 $393,6 S 84 Balance Sheet at December 31 Cash $ 106 $ 30 Accounts receivable-net 172 40 Dividends receivable from Saf 12 Inventories 190 20 Note receivable from Pan 10 Land 130 60 Buildings--net 340 160 Equipment-net 260 100 Investment in Saf 363,6 Total assets $1.573.6 $420 Accounts payable $ 170 $ 20 10 Note payable to Saf Dividends payable 16 Capital stock, S10 par 1.000 300 Retained earnings 393.6 84 Total equities $1.573.6 $420 REQUIRED: Prepare consolidation workpapers for Pan Corporation and Subsidiary for the year ended December 31, 2011. Only the information provided in the financial statements is available; accordingly, your solution will require some standard assumptions. Saf owned unrecorded patents having a fair value of $112,000, and a useful life of 10 years