Pillow Company purchased 90% of the common stock of Satin Company on May 1, 2016, for a cash payment of $474,000. December 31, trial balances for Pillow and Satin were:

Satin Company declared a $60,000 cash dividend on December 20, 2016, payable on January 10, 2017, to stockholders of record on December 31, 2016. Pillow Company recognized the dividend on its declaration date. Any difference between book value and the value implied by the purchase price relates to subsidiary land, included in property and equipment. Income is earned evenly throughout the year.

Required:

Prepare a consolidated statements workpaper at December 31, 2016.

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Pillow Satin $ 390,600 $ 179,200 Current Assets Treasury Stock at Cost, 500 shares Investment in Satin Company 32,000 510,000 -0- Property and Equipment 1,334,000 562,000 584,000 Cost of Goods Sold 1,261,000 Other Expenses 242,000 484,000 Dividends Declared -0- 60,000 Total $3,979,600 $1,659,200 $ 270,240 $ 124,000 Accounts and Notes Payable Dividends Payable 60,000 Capital Stock, $10 par value Other Contributed Capital Retained Earnings 1,000,000 200,000 364,000 90,000 315,360 209,200 Sales 1,940,000 976,000 Equity in Subsidiary Income 90,000 -0- Total $3,979,600 $1,659,200