Pop Corporation acquired a 70 percent interest in Stu Corporation on January 1, 2011, for $1,400,000, when Stu's stockholders' equity consisted of $1,000,000 capital stock and $600,000 retained earnings. On this date, the book value of Stu's assets and liabilities was equal to the fair value, except for inventories that were undervalued by $40,000 and sold in 2011, and plant assets that were undervalued by $160,000 and had a remaining useful life of eight years from January 1. Stu's net income and dividends for 2011 were $140,000 and $20,000, respectively. Separate-company balance sheet information for Pop and Stu Corporations at December 31, 2011, follows (in thousands):

REQUIRED: Prepare consolidated balance sheet workpapers for Pop Corporation and Subsidiary at December 31,2011.

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Pop Stu S 1 20 S 40 Cash Accounts receivable-customers Accounts receivable from Pop Dividends receivable 880 400 20 14. Inventories Land 1,000 200 640 300 Plant assets-net Investment in Stu 1,400 1,442 700 $5.056 $2,100 $ 600 S 160 Accounts payable-suppliers Accounts payable to Stu Dividends payable Long-term debt Capital stock Retained earnings 20 80 20 1,200 2,000 200 1,000 1.156 720 $2,100 $5,056