Consolidated balance sheet work papers (fair value/book value differentials and noncontrolling interest)

Pop Corporation acquired a 70 percent interest in Stu Corporation on January 1, 2011, for $1,400,000, when Stu’s stockholders’ equity consisted of $1,000,000 capital stock and $600,000 retained earnings. On this date, the book value of Stu’s assets and liabilities was equal to the fair value, except for inventories that were undervalued by $40,000 and sold in 2011, and plant ssets that were undervalued by $160,000 and had a remaining useful life of eight years from January 1. Stu’s net income and dividends for 2011 were $140,000 and $20,000, respectively.

Separate-company balance sheet information for Pop and Stu Corporations at December 31, 2011, follows (in thousands):

Â	Pop	Stu
Cash	$ 120	$ 40
Accounts receivable—customers	880	400
Accounts receivable from Pop	—	20
Dividends receivable	14	—
Inventories	1,000	640
Land	200	300
Plant assets—net	1,400	700
Investment in Stu	1,442	—
Â	$5,056	$2,100
Accounts payable—suppliers	$ 600	$ 160
Accounts payable to Stu	20	—
Dividends payable	80	20
Long-term debt	1,200	200
Capital stock	2,000	1,000
Retained earnings	1,156	720
Â	$5,056	$2,100

REQUIRED: Prepare consolidated balance sheet work papers for Pop Corporation and Subsidiary at December 31, 2011.