On January 1, 2011 Pak Corporation acquired Say Service Corporation for one million shares of Pak Stock, valued at $35 per share. Professional fees connected with the acquisition were $1,200,000 and costs of registering and issuing the new shares were $600,000, both paid in cash. Say performs vehicle maintenance service for owners of auto, truck and bus fleets. Says balance sheet at acquisition date was as follow:

Cash	300,000
Account receivables	2,700,000
Parts inventory	5,200,000
Equipment	17,600,000
Total Assets	25,800,000

Current liabilities	3,100,000
Long-term liabilities	8,600,000
Common stock	1,700,000
Additional paid in capital	3,500,000
Retained earnings	8,900,000
Total liabilities and equity	25,800,000

In reviewing Says assets and liabilities at the acquisition date, Pak determined the following:

On a discounted present value basis, the accounts receivables had a fair value of $2,600,000, and the long-term liabilities have a fair value of $8,000,000 with maturity of 20 years. The replacement cost of the parts inventory was $6,000,000. The turnover of short-term assets and liabilities is less than one year. The current replacement cost of the equipment was $19,500,000. The equipment had a 16-year life Say occupies its service facilities under an operating lease with ten years remaining. The rent is below current market levels, giving the lease an estimated fair value of $1,250,000 Say had long-term service contracts with several large fleet owners. These contracts have been profitable; the present value of expected profits over the remaining term (10 years) of the contracts is estimated at $2,000,000. These contracts meet the criteria for recognition separately. Says trade name is well-known among fleet owners and is estimated to have a fair value of $200,000. The estimated remaining life was 4 years.

Following are selected accounts for Pak Corporation and Say Service as of December 31, 2015 (credit balances indicated by parentheses). Several assets and liabilities accounts have been omitted.

Account	Pak	Say
Income Statement
Revenues	(8,500,000)	(7,130,000)
Cost of service	4,000,000	3,275,000
Depreciation	950,000	1,100,000
Amortization	400,000
Interest expenses	1,030,500	800,000
Equity in Say's income	?	0
Net income	?	(1,955,000)
Statement of retained earnings
Retained earnings 1/1/2015	(14,700,000)	(13,672,500)
Net income (above)	?	(1,955,000)
Dividend paid	690,250	400,000
Retained earnings 12/31/2015	?	(15,227,500)
Balance sheet
Cash	3,350,000	710,000
Account receivable	1,000,000	1,500,000
Part inventory	2,500,000	3,800,000
Equipment (net)	7,250,000	6,600,000
Building	13,200,000	5,000,000
Investment in Say	?
Total Assets
Current liabilities	(4,200,000)	(2,800,000)
LT liabilities	(3,000,000)	(6,400,000)
Common stock	(3,550,000)	(1,700,000)
Additional paid in capital	(5,870,000)	(3,500,000)
Retained earnings 12/31/2015	?	(15,227,500)
Total liabilities and equities

Say reported the following figures for years preceding 12/31/2015:

	2011	2012	2013	2014	2015
Net income	1,162,500	1,600,000	1,485,000	1,650,000	1,955,000
Dividend	325,000	300,000	200,000	300,000	400,000

Pak uses the Equity method to account for the investment account.

Say has not issued or repurchased stocks in the past 5 years.

Required:

Prepare Consolidation Worksheet for the selected accounts of Pak Corporation and Say Service (i.e. consolidation adjustment entries and consolidated totals).