Corporation acquired a 90 percent interest in St Corporation on January 1, 2011, for $270,000, at which time S 's capital stock and retained earnings were $150,000 and $90,000, respectively. The fair value/book value differential is goodwill. Financial statements for P. and S - for 2012 are as follows (in thousands): P Combined Income and Relained Earnings Statement for the Year Ended December 31, 2012 Sales $ 450 Income from $ 40 Gain on land 5 Cost of sales (200) Operating expenses (113) (40) Net income 182 Add: Retained earnings January 202 Less: Dividends (150) Retained earnings, December 31 $ 234 Balance Sheet at December 31, 2012 Cash $ 133 Accounts receivable 180 Dividends receivable 18 Inventories 60 Land 100 Buildings--net 280 Machinery--net 330 Investment in S 303 $1,404 Accounts payable $ 200 Dividends payable 30 Other liabilities 140 Capital stock Retained earnings 234 $1,404 113932|33149233 234| 800 Additional information: 1. P sold inventory items to S for $60,000 during 2011 and $72,000 during 2012. S's inventories at December 31 2011 and 2012 included unrealized profits of $10,000 and $12,000 respectively 2. On July 1, 2011, P sold equipment with a book value of $28,000 to S for $35,000. The equipment had a useful life of 3.5 years at the time of the same, and straight-line depreciation is use. 3. During 2012, P sold land with a book value of $15,000 to S for $20,000. 4. P's accounts receivable on Dec. 31 2012 includes $10,000 due from S 5. P uses the equity method for its investment in S Required: Prepare eliminating working paper entries on Dec. 31, 2012 (the seven steps)