Pan Corporation purchased 90 percent of Son Corporation's outstanding stock for $14,400,000 cash on January 1, 2011,

Question:

Pan Corporation purchased 90 percent of Son Corporation's outstanding stock for $14,400,000 cash on January 1, 2011, when Son's stockholders' equity consisted of $8,000,000 capital stock and $2,800,000 retained earnings. The excess was allocated $3,200,000 to undervalued equipment with an eight-year remaining useful life and $2,000,000 to goodwill. Son's net income and dividends for 2011 were $2,000,000 and $800,000, respectively. Comparative balance sheet data for Pan and Son Corporations at December 31, 2011, are as follows (in thousands):

REQUIRED
Prepare consolidated balance sheet workpapers for Pan Corporation and Subsidiary on December 31, 2011.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...