Financial statements for Pil and San Corporations for 2011 are as follows (in thousands):

ADDITIONAL INFORMATION1. Pil acquired an 80 percent interest in San on January 2, 2009, for $290,000, when San's stockholders' equity consisted of $300,000 capital stock and no retained earnings. The excess of investment fair value over book value of the net assets acquired related 50 percent to undervalued inventories (subsequently sold in 2009) and 50 percent to a patent with a 10-year amortization period.2. San sold equipment to Pil for $25,000 on January 1, 2010, at which time the equipment had a book value of $10,000 and a five-year remaining useful life (included in plant assets in the financial statements).3. During 2011, San sold land to Pil at a profit of $10,000 (included in plant assets in the financial statements).4. Pil uses the equity method to accounting for its investment in San.REQUIRED: Prepare a consolidation workpaper for Pil Corporation and Subsidiary for the year ended December 31,2011.

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Pil San Combined Income and Retained Earnings Statement for the Year Ended December 31, 2011 Sales $130 $210 Income from San Gain on sale of land 31.9 10 Depreciation expense Other expenses Net income Add: Beginning retained earnings Deduct: Dividends (40) (30) (60 (110) 91.9 50 50 140.4 (30) $202.3 Retained earnings December 31 $100 Balance Sheet at December 31, 2011 Current assets Plant assets $200 550 $170 350 Accumulated depreciation Investment in San (120) 322.3 (70) $450 $ 50 300 100 Total assets Current liabilities $952.3 S150 Capital stock Retained earnings Total equities 600 202.3 $952.3 $450