Par Corporation acquired an 80 percent interest in Sip Corporation for $180,000 cash on January 1, 2016, when Sip had capital stock of $50,000 and retained earnings of $150,000. The excess of fair value over book value acquired is due to a patent, which is being amortized over five years. Sip purchased its 20 percent interest in Par at book value on January 2, 2016, for $100,000.

Financial statements for the year ended December 31, 2017, are summarized as follows:

ADDITIONAL INFORMATION
1. Par's separate earnings and dividends for 2017 were $60,000 and $20,000, respectively. Sip's separate earnings and dividends in 2017 were $40,000 and $20,000, respectively.
2. Sip sold land to an outside interest for $7,000 on January 3, 2017, that it purchased from Par on January 3, 2016, for $4,000. The land had originally cost Par $2,000.
REQUIRED:
Prepare consolidation workpaper entries and a consolidation workpaper for Par Corporation and Subsidiary at December 31, 2017, using the conventional approach for the mutual holding.

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Sip Par Combined Income and Retained Earnings Statement for the Year Ended December 3I Sales Income from Sip Dividend income Gain on sale of land Expenses $140,000 28,000 $100,000 4,000 3,000 (60,000) (80,000) Net income Add: Beginning retained earnings Deduct: Dividends 405,710 16,000) $477,710 180,000 (20,000) $207,000 Retained earnings December 31 Balance Sheet at December 31 Other assets Investment in Sip (80%) Investment in Par (20%) $448,000 109,710 $157,000 100,000 $257,000 Total assets $557,710 50,000 207,000 $257,000 Capital stock Retained earnings Total equities $80,000 477,710 $557,710