Pep Corporation owns a 40 percent interest in Jay Company, a joint venture that is organized as an undivided interest. In its separate financial statements, Pep accounts for Jay under the equity...

Pep Corporation owns a 40 percent interest in Jay Company, a joint venture that is organized as an undivided interest. In its separate financial statements, Pep accounts for Jay under the equity method, but for reporting purposes, the proportionate consolidation method is used.
Separate financial statements of Pep and Jay at and for the year ended December 31, 2011, are summarized as follows (in thousands):





REQUIRED: Prepare a workpaper for a proportionate consolidation of the financial statements of Pep Corporation and Jay Company at and for the year ended December 31, 2011.