Parent Corporation paid $400,000 cash for 90% of Subsidiary Corporation's common stock on January 1, 2006,

when Subsidiary had $300,000 capital stock and $100,000 retained earnings. Th book value of Subsidiary's assets and liabilities were equal to fair values. During 2006, Subsidiary reported net income of $20,000 and declared $10,000 in dividends on December 31. Balance sheets for Parent and Subsidiary at December 31, 2006, are as follows (in thousands): Parent Subsidiary Assets Cash $ 42 $ 20 Receivable - net 50 130

Inventories 400 50 Land 150 200 Equipment - net 600 100 Investment in Subsidiary 409 $ 1,651 $ 500 Liabilities and Equity Accounts payable 410 80 Dividends payable 60 10 Capital stock 1000 300 Retained earnings 181 110 $ 1,651 $ 500 Required: 1. Prepare consolidated balance sheet working papers for Parent Corporation and Subsidiary for December 31,2006.