P3-9 Consolidated balance sheet workpapers with patent and consolidated net income Peeves Corporation paid $4,000,000 in cash for an 80 percent interest in Jeeves Corporation on January 1,2016 , when Jeeves' common stock was at $2,500,000 and retained earnings were at $500,000. Comparative balance sheet data for Peeves and Jeeves Corporations at December 31, 2016, are as follows (in thousands): In 2016, undervalued inventory of $150,000 was sold, and equipment with a four-year remaining useful life was undervalued by $240,000. Additionally, Peeves' separate net income was at $900,000, while that of Jeeves' was $250,000. Jeeves declared dividends of $50,000, and $50,000 of Peeves' accounts receivable is from Jeeves. REQUIRED 1. Prepare consolidated balance sheet workpapers for Peeves Corporation and Subsidiary at December 31 , 2016. 2. Calculate the consolidated net income for 2016 . P3-9 Consolidated balance sheet workpapers with patent and consolidated net income Peeves Corporation paid $4,000,000 in cash for an 80 percent interest in Jeeves Corporation on January 1,2016 , when Jeeves' common stock was at $2,500,000 and retained earnings were at $500,000. Comparative balance sheet data for Peeves and Jeeves Corporations at December 31, 2016, are as follows (in thousands): In 2016, undervalued inventory of $150,000 was sold, and equipment with a four-year remaining useful life was undervalued by $240,000. Additionally, Peeves' separate net income was at $900,000, while that of Jeeves' was $250,000. Jeeves declared dividends of $50,000, and $50,000 of Peeves' accounts receivable is from Jeeves. REQUIRED 1. Prepare consolidated balance sheet workpapers for Peeves Corporation and Subsidiary at December 31 , 2016. 2. Calculate the consolidated net income for 2016