PROBLEMS P3-1 Prepare a consolidated balance sheet at acquisition date On December 31, 2016, Ali Corporation acquired 90 percent of interest in Baba Corporation at book value in cash. Separate balance sheets before acquisition are summarized as follows (in thousands): Ali Baba Assets Cash Accounts receivable Inventories Land Buildings-net Equipment-net $550 200 440 600 750 800 $3.340 $100 120 80 100 60 160 $620 Liabilities and Stockholder's Equity Accounts payable Common stock, S10 par Retained earnings $180 2.500 660 $3,340 $120 300 200 $620 REQUIRED: Prepare a consolidated balance sheet for Ali Corporation and Subsidiary at December 31, 2016