Workpapers in year of acquisltion (goodwill and intercompany transactions) Pan Corporation acquired a 75 percent interest in Saf Corporation oa January1,2011. Financial state- ments of Pan and Saf Corporations for the year 2011 are as follows (in thousands): Pan Saf Combined Income and Retained Earnings Slatements for the Year Ended December 31 S200 Income from Saf Cost of sales Other expenses 27.6 (500) (100) Net income Add: Retained earnings Jan ary1 Deduct: Dividends Retained earnings December 31 Pan Saf Balance Sheet at December 31 Cash Accounts receivable-net Dividends receivable from Saf S 106 S 30 172 12 190 20 10 60 160 100 Note receivable from Pan Buildings-net Equipment-net Investment in Saf 130 340 260 363.6 Total assets S 20 Accounts payable Note payable to Saf Dividends payable S 170 10 16 Cepital stock, $10 par 1,000 393 Retained earnings Tolal equities 1:573 REQUIRED: Prepare consolidation workpapers for Pan Corporation and Subsidiary for the year ended December 31, 201. Only the information provided in the financial statements is available; accordingty your solution will require some standard assumptions. Saf owned unrecorded patents having a fair value of S112,000, and a useful life of 10 years