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. Com- parative balance sheet data for Peeves and Jeeves Corporations at December 31, 2016, are as follows (in thousands): Peeves Jeeves Assets Cash $90 $70 Receivables-net 250 300 Dividend receivable 40 Inventories 2,250 1,100 Land 800 550 Equipment-net 1,500 1,400 Investment in Jeeves 4,032 $ 8,962 $3,420 Equities Accounts payable $110 $120 Dividend payable 50 Common stock, $10 par 5,000 2,500 Retained earnings 3,852 750 $8,962 $3.420 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 receiv able 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.