P8-3 Sale of an interest during accounting period, upstream building sale Piero SAA was a 90 percent-owned subsidiary of Isac SAA acquired for $3,600,000 on January 1, 2014. The total net assets for Piero SAA at the acquisition date were $3,800,000. The book value identifiable assets and liabilities of Piero SAA is the same with the fair value. The trial balance of both companies for the year ended 2014 is as follows (in thousands): Debits Cash Accounts receivable Inventory Land Equipment Investment in Piero SAA Cost of sales Other expenses Dividends Isac SAA $900 200 1,640 2,100 3,000 2,835 5,800 400 200 $ 17,075 Piero SAA $400 700 700 2.800 1,400 0 2,800 700 200 $ 9,700 Total Credits Accounts payable Common stock Additional-paid in capital Retained Earnings Sales Income from Piero SAA Total $1,900 5,000 50 2,500 7,400 225 $ 17,075 $1,400 2,000 0 1,800 4,500 0 $ 9,700 ADDITIONAL INFORMATION 1. On March 31, 2014, Isac SAA sold its 20 percent of ownership in Piero SAA for $900,000. 2. On July 1, 2013, Piero SAA sold equipment to Isac SAA with a profit of $500,000. The equipment has a remaining useful life of 5 years and the only dividend declared during the year by Piero SAA was on August 1, 2014 3. Piero SAA income and expenses occurred proportionately during the year. REQUIRED: Prepare a workpaper to consolidate the financial statement of Isac SAA and Subsidiary for the year ended December 31, 2014