Pari Corporation acquired a 70% interest in Soul Corporations oustanding voting

common stock on January 1, 2015, for $490,000 cash. The stockholders equity of Soul

on this date consisted of $500,000 capital stock and $100,000 retained earnings. The

difference between the price paid by Pari and the book value of Soul were allocated

$5,000 to Souls cost of sales, $14,000 to undevalued buildings, $21,000 to

undervalued equipment, and $40,000 to previously unrecorded patents. Any remaining

excess is goodwill.

The undervalued inventory items were sold during 2015 , and the undervalued buildings

and equipment had remaining useful lives of seven (7) years and three (3) yeaes

respectively. The patent has a 40-year life. Depreciation is straight line.

At Deceber 31, 2015, Souls accounts payable include $10,000 owed to Pari. This

$10,000 account payable due on January 1, 2016. Separate statement for Pari and Soul

for 2015 are summarized as followsn (in thousands):

Instructions

a. Prepare consolidation working papers for Tom Corporation and Subsidiary for the year ended December 31, 2015..