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P 3-9 Consolidated balance sheet workpapers (excess allocated to equipment and goodwill) Pan Corporation purchased...

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P 3-9 Consolidated balance sheet workpapers (excess allocated to equipment and goodwill) Pan Corporation purchased 90 percent of Son Corporation's outstanding stock for $7,200,000 cash on January 1, 2011, when Son's stockholders' equity consisted of $4,000,000 capital stock and $1,400,000 retained earnings. The excess was allocated 51,600,000 to undervalued equipment with an eight-year remaining useful life and $1,000,000 to goodwill. Son's net income and dividends for 2011 were $1,000,000 and $400,000, respectively. Comparative balance sheet data for Pan and Son Corporations at December 31, 2011, are as follows (in thousands): Pan Son Cash $ 600 $ 400 Receivables-net 1,200 800 Dividends receivable 180 Inventory 1,400 1,200 Land 1,200 1,400 Buildingsnet 4,000 Equipment-net 3,000 1,600 Investment in Son 7,560 $19.140 $7.400 Accounts payable $ 600 $1.200 Dividends payable 1,000 200 Capital stock 14,000 4,000 Retained earnings 3,540 2.000 $19,140 $7,400 2,000 REQUIRED: Prepare consolidated balance sheet workpapers for Pan Corporation and Subsidiary on December 31, 2011

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