Separate company financial statements for Pen Corporation and its subsidiary, Syn Company, at and for the year ended December 31, 2012, are summarized as follows (in thousands):

ADDITIONAL INFORMATION1. Pen Corporation acquired 13,500 shares of Syn Company stock for $15 per share on January 1, 2011, when Syn's stockholders' equity consisted of $150,000 capital stock and $15,000 retained earnings.2. Syn Company's land was undervalued when Pen acquired its interest, and accordingly, $20,000 of the fair value/book value differential was assigned to land. Any remaining differential is assigned to unrecorded patents with a 10-year remaining life.3. Syn Company owes Pen $5,000 on account, and Pen owes Syn $5,000 on a note payable.REQUIRED: Prepare consolidated workpapers for Pen Corporation and Subsidiary for the year ended December 31,2012.

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Pen Syn Combined Income and Retained Earnings Statements for the Year Ended December 31 Sales $400 $100 Income from Syn Cost of sales Expenses Net income Add: Retained earnings January 1 Deduct: Dividends Retained earnings December 31 18 (250) (50) (100.6) 67.4 (26) 24 177 34 (50) (16) $194.4 $ 42 Balance Sheet at December 31 $ 15 $ 18 Cash Accounts receivable-net Dividends receivable from Syn Note receivable from Pen 80 20 7.2 Inventory Investment in Syn 95 10 219.6 65 Land 30 Buildings-net Equipment-net 170 130 80 50 Total assets $784.8 $210 $ 10 $ 85.4 Accounts payable Note payable to Syn Dividends payable Capital stock, $10 par Retained earnings Total equities 500 150 194,4 42 $210 $784.8