Pecan Incorporated acquired 80% of the voting stock of Shew Manufacturing for $800,000 on January 2, 2011 when Shew had outstanding common stock of $600,000 and Retained Earnings of $300,000. The book value and fair value of Shew's assets and liabilities were equal except for equipment. The entire fair value/book value differential is allocated to equipment and is fully depreciated on a straight-line basis over a 5-year period. During 2011, Shew borrowed $80,000 on a short-term non-interest-bearing note from Pecan, and on December 31, 2011, Shew mailed a check for $20,000 to Pecan in partial payment of the note. Pecan deposited the check on January 4,2012 , and recorded the entry to reduce the note balance at that time. Required: Complete the consolidation working papers for the year ended December 31,2011. Pecan Incorporated acquired 80% of the voting stock of Shew Manufacturing for $800,000 on January 2, 2011 when Shew had outstanding common stock of $600,000 and Retained Earnings of $300,000. The book value and fair value of Shew's assets and liabilities were equal except for equipment. The entire fair value/book value differential is allocated to equipment and is fully depreciated on a straight-line basis over a 5-year period. During 2011, Shew borrowed $80,000 on a short-term non-interest-bearing note from Pecan, and on December 31, 2011, Shew mailed a check for $20,000 to Pecan in partial payment of the note. Pecan deposited the check on January 4,2012 , and recorded the entry to reduce the note balance at that time. Required: Complete the consolidation working papers for the year ended December 31,2011