At December 31, 2011, when the fair values of Sam Corporation's net assets were equal to their book values of $2,400,000, Pit Corporation acquired an 80 percent interest in Sam for $2,240,000. One year later, at December 31, 2012, the comparative adjusted trial balances of the two corporations appear as follows (in thousands):

ADDITIONAL INFORMATION
During 2013, Sam Corporation sold inventory items costing $150,000 to Pit for $230,000. Half of these inventory items remain unsold at December 31, 2013.
REQUIRED
Prepare comparative consolidated financial statements for Pit Corporation and Subsidiary at and for the year ended December 31, 2013, under
1. Traditional theory
2. Parent-company theory
3. Entity theory

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Pit Corporation Sam Corporation $ 408 Cash Accounts receivable Inventory $ 700 300 400 800 2,000 Buildings Investment in Sanm Cost of sales Expenses Dividends 1,600 2,000 9.000 2.400 3,750 1,500 1,900 $22,758 2,000 500 300 Total debits Accumulated depreciation Accounts payable Capital stock 2,000 1.758 8,000 3,600 7,000 400 $22.758 $600 1,000 2,000 400 3,000 Sales Income from Sam Total credits