Workpapers and financial statements in year of acquisition Pal Corporation acquired 100 percent of the outstanding voting stock of Sal Corporation for $91,000 cash on January 1, 2011, when Sals stockholders equity was $130,000. All the assets and liabilities of Sal were stated at fair values (equal to book values) when Pal acquired its 100 percent interest. Financial statements of the two corporations at and for the year ended December 31, 2011, are summarized as follows (in thousands):
		Sal
Combined Income and Retained Earnings	Pal	Fair value
Statements for the Year Ended December 31
Sales	$620	$200
Income from Sal	21	0
Cost of Goods Sold	-400	-130
Operating expenses	-154	-40
Net income	87	30
Add: Retained earnings January 1	130	22
Deduct: Dividends	-60	-20
Retained earnings December 31	$157	$32
Balance Sheet at December 31
Cash	$91	$30
Receivablesnet	120	60
Inventories	48	40
Plant and equipmentnet	240	70
Investment in Sal	98
Total assets	$597	$200
Accounts payable	$60	$36
Other liabilities	40	24
Capital stock, $10 par	300	100
Other paid-in capital	40	8
Retained earnings	157	32
Total equities	$597	$200
Prepare all entries for the investment with the corresponding supporting working papers.
Preparing the fusion entry
Attach worksheet calculating goodwill/bargain