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On December 31, 2011, Pen Corporation purchased 80 percent of the stock of But Company at book value. The data reported on their separate balance sheets immediately after the acquisition follow. At December 31, 2011, Pen Corporation owes Sut $10,000 on accounts payable. (All amounts are in thousands.) Pen Sut Assets Cash 5 64 5 36 Accounts receivable 5 90 5 68 Inventories 5 286 5 112 Investment in Sut 5 400 Equipmentnet S 760 S 350 $1,600 5 566 Liabilities and Stockholders' Equity Accounts payable 5 80 S 66 Common stock, $20 par 5 920 5 300 Retained earnings 5 600 5 200 $1,600 5 566 REQUIRED: 1. Prepare a consolidated balance sheet for Pen Corporation and Subsidiary at December 31, 2011. 2. Compute consolidated net income for 2012 _a_s_s_u_m_i_ng_t_hat Pen Corporation reported separate income of $340,000 and Sut Company reported net income of $180,000. (Separate incomes % not include income from the investment in But.)