P 4-4 Consolldation workpapers from separate financial statements Pal Corporation acquired a 75 percent interest in Sun Corporation on January1,2011, for $720,000 in cash. Financial statements of Pal and Sun Corporations for 2011 are as follows in thousands) Pal Combined Income and Retained Earnings Statements for the Year Ended December 31 Sales Income from Sun Cost of sales Oher expenses Net income Add: Retained earnings January1 Deduct: Dividends $1,600 $400 1,000) (200) (388) (104) 136 200) (64 72 720 Retained earnings December 31 Balance Sheet at December 31 Cash Accounts receivable net Dividends receivable from Sun Inventories Note receivable from Pal Land Buildings net Equipment net Investment in Sun s 60 80 s 236 320 24 380 40 20 120 320 260 680 520 Total assets $3.164-40 Accounts payable Note payable to Sun Dividends payable S 340 20 32 2,000 600 1 S3.164 840 Capital stock, S10 par Retained earnings Total equities