Werkpapers (year of acquisition, excess assigned to inventory, equipment and patents, intercompany transactions) Pas Corporation acquired 80 percent of Sel Corporation's common siock on January 1, 2011, for $50,000 retained carnings. The difference between the fair value of Sel and the underlying equity acquired in Sel was due to a $12,500 undervaluation of Sel's iaventory, a $25,000 undervaluation of Sel's equipment, and unrecorded patents with a 20-year life. The undervalued invent undervalbed inventory items were sold by Sel during 2011, and the undervalued cquip- ment had a remaini ng useful life of ive years, Straight-line depreciation is used. Sel owed Pas $4,000 on accounts payable at December 31, 2011. The separate financial statements of Pas and Sel Corporations at and for the year ended December 31, 2011, are as follows (in thousands): Sel Combined Income and Relained Earnings Statements for the Year Ended December 31 Sales Income from Sel Cost of sales 17 (40) (40) Depreciation expense Other expenses 71.5 75 (40) 40 50 Net income Add: Retained earnings January Deduct: Dividends Retained carmings December 31 $106.5 570 Balance Sheet at December 31 s 29.5 30 28 Trade receivables-net Dividends receivable Inventories Laad Buildings-net Equipment-Det 30 30 70 100 40 15 211 596.5 Irvestment in Sel Toal assets s s0 10 20 150 70 5300 s 40 100 Accounts payable Dividends payable Other lLiabilities Cspital stock, $10 par Retained earmings 300 106.5 $596.5 Total equities REQUIRED: Prepare consolidation workpapers for Pas Corporation and Subsidiary at and for the year ended December 31, 2011