Nike, Inc. sells merchandise to its wholly-owned subsidiary, Converse, at a 30 percent markup on cost and Converse sells to Nike at a markup of 20 percent on selling price. Transactions between the affiliates during the year ended December 31, 2013, are given below (in thousands):

Required
Prepare the working paper eliminations related to these intercompany transactions at December 31, 2013.

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Nike Converse Inventories at January 1, 2013, acquired from affiliate........75,000 $117,000 Sales made to affiliate during 2013.... . Inventories at December 31, 2013, acquired from affilliate ...^.--.._.. 80,000 550,000 110,500 600,000