Plastik Corporation acquired 80% of Seldane Corporation's common stock on January 1, 2009 for $210,000 cash. The stockholders' equity of Seldane at this time consisted of $ 150,000 capital stock and $ 50,000 retained earnings . The difference between the price paid by Plastik and the underlying equity acquired in Seldane was due to a $ 8,500 undervaluation of Seldane's inventory , a $ 20,000 undervaluation of Seldane's equipment and goodwill The undervalued inventory items were sold by Seldane during 2009 and the undervalued equipment has a remaining useful life of five years . Straight line depreciation is used Seldane owed Plastic $ 6,000 on accounts payable at December 31, 2009The separate financial statements of Plastic and Seldane Corporation at and for the year ended December 31, 2009 are as follows (in thousands)

					Plastik	Seldane
Sales					200	110
Income from Seldane					22
Cost of Sales					(80)	(40)
Depreciation expense					(40)	(20)
Other expense					(25.5)	(10.0)
Net income					76.5	40
Retained Earnings Jan 1					75	50
Deduct Dividends					(40)	(20)
Retained Earnings Dec 31					111.5	70
Cash					29.5	30
Trade receivables -net					28	40
Dividends receivables					8
Inventories					40	30
Land					15	30
Building -net					65	70
Equipment -net					200	100
Investment in Seldane					216
Total assets					601.5	300
Accounts payable					40	50
Dividends payable					100	10
Other liabilities					50	20
Capital stock , $10 par					300	150
Retained Earnings					111.5	70
Total Liab and Equity					601.5	300

Required

a) Prepare Consolidated statements for Plastic and Seldane for the year ended December 31,2009

b) Prepare all the investor entries made during the year

c) Prepare all consolidating /eliminating entries

Answer rating: 100% (QA)

aConsolidated Statement of Income Plastik and Seldane Corporation Year Ended December 31 2009 Sales 310000 Cost of Sales 120000 Gross Profit 190000 De... View the full answer