Financial statements for Pat and Sal Corporations for 2011 are summarized as follows (in thousands):

Pat owns 90,000 shares of Sal's outstanding voting common stock at December 31, 2011.These shares were acquired in two lots as follows:

The stockholders' equity of Sal at year-end 2009, 2010, and 2011 was as follows (in thousands):

Sal's net income for 2011 is $90,000, earned proportionately throughout the year, and its quarterly dividends of $12,500 are declared on March 15, June 15, September 15, and December 15. (Quarterly dividends of $12,500 include dividends on common stock and preferred stock.) There are no intercompany receivables or payables at December 31, 2011, and there have been no intercompany transactions other than dividends.REQUIRED: Prepare a consolidation workpaper for Pat and Subsidiary for 2011.

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Pat Sal Combined Income and Retained Earnings Statements for the Year Ended December 31 Sales Income from Sal Cost of sales Other expenses Net income $1,233 68 $700 (610) (390) 301 (400) (210) 90 Add: Retained earnings January 1 Less: Dividends 501 200 (200) $ 602 (50) $240 Retained earnings December 31 Balance Sheet at December 31 $ 191 $ 50 Cash Other current assets 200 300 Plant assets-net Investment in Sal Total assets 900 600 711 $2,002 $950 $ 200 $ 60 Current liabilities $10 preferred stock Common stock 100 1,200 500 Other paid-in capital Retained earnings Total equities 50 602 240 $2,002 $950