Workpapers (year of acquisition, excess recorded for inventory, equipment and patents, intercompany transactions) Pas Corporation acquired 80 percent of Sel Corporation's common stock on January 1,2011, for S420,000 cash. The stockholders' equity of Sel at this time consisted of S300,000 capital stock and 100,000 retained earnings.The difference between the fair value of Sel and the underlying equity se- quired in Sel was due to a $25,000 undervaluation of Sel's inventory, a S50,000 undervaluation of Sels equipment, and unrecorded patents with a 20-year remaining life The undervalued inventory was sold by Sel during 2011, and the undervalued equipment had a remaining usefui life of five years. Straight-line depreciation is used Sel owed Pas $8,000 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 Retained Earnings Statements for the Year Ended December 31 S220 34 (160) tncome from Sel Cost of sales Depreciation expense Ouher expenses Net income 150 Add: Retained earnings January 1 Deduct: Dividends Retained eamings December 3t Pas Sel Balance Sheet at December 3 Cash Trade reccivables-nct Dividends receivable S 60 S 59 16 30 130 Buildings-net Equipment-net Investment in Sel Total assets 1.19 S 80 $100 20 Accounts payable Dividends payable Other liabilities Capital stock, $10 par Retained enrnings 300 Total equities 1.19 REQUIRED: Prepare consolidation workpapers for Pas Corporation and Subsidiary at and for the year ended December 31,2011