Prepare stockholders’ equity section of consolidated balance sheet one year after acquisit...

Prepare stockholders’ equity section of consolidated balance sheet one year after acquisition

Pas and Sal Corporations' balance sheets at December 31, 2010, are summarized as follows (in thousands)

Pas acquired 80 percent of the voting stock of Sal on January 2, 2011, at-a cost of $320,000. The fair values of Sal’s net assets were equal to book values on January 2, 2011.

During 2011, Pas reported earnings of $110,000, including income from Sal of $32,000, and paid dividends of $50,000. Sal’s earnings for 2011 were $40,000 and its dividends were $30,000.

REQUIRED: Prepare the stockholders’ equity section of the December 31, 2011, consolidated balance sheet for Pas Corporation and Subsidiary.