Pic Corporation acquired an 80 percent interest in Sic Company on January 1, 2011, for $136,000, when Sic's capital stock and retained earnings were $100,000 and $70,000, respectively. At the beginning of 2011, Sic sold a machine to Pic for $10,000. The machine had cost Sic $7,000, had depreciated $2,000 while being used by Sic, and had a remaining useful life of five years from the date of sale. Trial balances of the two companies on December 31, 2011 and 2012, are as follows (in thousands):

REQUIRED: Prepare consolidation workpapers for Pic Corporation and Subsidiary for the year ended December 31, 2011, and the year ended December 31,2012.

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2011 2012 Pic Sic Pic Sic Debits $ 50 $ 63 $ 30 $ 30 70 Cash and equivalents Other current assets Plant and equipment Investment in Sic 130 140 80 400 160 250 50 200 440 192 260 50 55 $1,200 245 Cost of sales Depreciation expense Other expenses 130 25 140 25 60 $1.100 20 $475 30 $550 Credits $ 150 $ 50 $ 75 $ 200 Accumulated depreciation Liabilities 100 300 50 100 48 300 40 100 Capital stock Retained earnings Sales 126 400 70 200 190 430 100 235 Gain on plant asset Income from Sic 5 24 32 $1.200 $1.100 $475 $550