Prepare a consolidated balance sheet one year after acquisitionAdjusted trial balances for...

Prepare a consolidated balance sheet one year after acquisition

Adjusted trial balances for Pal and Sor Corporations at December 31, 2011, are as follows (in thousands):

Pal purchased all the stock of Sor for $800,000 cash on January 1, 2011, when Sor’s stockholders’ equity consisted of $100,000 capital stock and $180,000 retained earnings. Sor’s assets and liabilities were fairly valued except for inventory that was undervalued by $40,000 and sold in 2011, and plant assets that were undervalued by $80,000 and had a remaining useful life of four years from the date of the acquisition.

REQUIRED: Prepare a consolidated balance sheet for Pal Corporation and Subsidiary at December 31, 2011.