Sanur Corporation acquired a 75 percent interest in Par Corporation on January 1, 2018. Financial statements of Sanur and Par Corporations for the year 2018 are as follows (in thousands): (15 Marks)

Combined Income and Retained Earnings Statements for the Year Ended December 31	Sanur ($)	Par($)
Sales	$1,600	$400
Income from Par	55.2
Cost of sales	(1,000)	(200)
Other expenses	(388)	(104)
Net income	267.2	96
Add: Retained earnings January 1	720	136
Deduct: Dividends	(200)	(64)
Retained earnings December 31	787.2	168
Balance Sheet at December 31
Cash	$ 212	$ 60
Accounts receivablenet	344	80
Dividends receivable from Par	24
Inventories	380	40
Note receivable from Sanur		20
Land	260	120
Buildingsnet	680	320
Equipmentnet	520	200
Investment in Par	727.2
Total assets	$3,147.2	$840
Accounts payable	$ 340	$ 40
Note payable to Par	20
Dividends payable		32
Capital stock, $10 par	2,000	600
Retained earnings	787.2	168
Total equities and liabilities	$3,147.2	$840

Required:

1. Prepare all the required journal entries for consolidated work paper.

2. Prepare consolidation work papers for Sanur Corporation and Subsidiary for the year ended December 31, 2018. Only the information provided in the financial statements is available; accordingly, your solution will require some standard assumptions. Par owned unrecorded copyrights having a fair value of $224,000, and a useful life of 10 years.