Comparative income statements of Pek Corporation and Slo Corporation for the year ended December 31, 2013, are as follows (in thousands):

ADDITIONAL INFORMATION1. Slo is a 90 percent-owned subsidiary of Pek, acquired by Pek for $1,620,000 on January 1, 2011, when Slo's stockholders' equity at book value was $1,400,000.2. The excess of the cost of Pek's investment in Slo over book value acquired was allocated $60,000 to undervalued inventories that were sold in 2011, $40,000 to undervalued equipment with a four-year remaining useful life, and the remainder to goodwill.REQUIRED: Prepare a consolidated income statement for Pek Corporation and Subsidiary for the year ended December 31,2013.

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Pek Slo $1,000 Sales Income from Slo Total revenue $3.200 261 3.461 1,000 Less: Cost of goods sold Operating expenses Total expenses Net income 1,800 400 800 2,600 $ 861 300 700 $ 300