Pita Corporation acquired 80 percent of the outstanding stock of Sita Corporation for $840,000 cash on January 2, 2022, on which date Sita's stockholders equity consisted of capital stock of $600,000 and retained earnings of $150,000. There were no changes in the outstanding stock of either corporation during 2022 and 2023. On December 31, 2023, the adjusted trial balances of Pita and Sita are as follows (in thousands):

Additional Information:

1. All of Sitas Assets and liabilities were recorded at fair values equal to book values on January 2, 2022.

2. The current liabilities of Sita at December 31, 2023, include dividends payable of $30,000 to Pita.

Required:

1. Prepare entries that should be made by Pita for its acquiring investment in 2022; and for dividend and net income from Sita in 2023.

2. Determine the amounts that should appear in the consolidated statements of Pita Corporation and subsidiary at December 31, 2023, for each of the following:

1. Noncontrolling interest share.

2. Current Assets

3. Capital Stock.

4. Income from Sita.

5. Investment in Sita.

6. Excess of investment cost over book value.

7. Consolidated net income for year ended December 31, 2023.

8. Consolidated retained earnings, December 31, 2022.

9. Consolidated retained earnings, December 31, 2023.

3. Prepare Pita Corporation and its subsidiary consolidation working paper for year ended Dec 31, 2023