Intercompany Profit Transactions-Inven P 5-6 Upstream and downstream sales, 90 percent owned Justin Bhd is a 90 percent-owned company of Epik Bhd and was acquired in 2011, when the book value of Justin Bhd's net identifiable assets were equal to fair value. Information regarding inventory transactions between Justin Bhd and Epik Bhd is as follows n 2013, Justin Bhd sold inventories of $5,000,000 to Epik Bhd with 20 percent gross profit on it. At the end of the year, $200,000 inventories from Justin Bhd remained in Epik Bhd In 2014, Epik Bhd sold inventories of $8,000,000 to Justin Bhd. The gross profit on the sale was 10%. At the end of the year, $100,000 inventories from Epik Bhd were not sold to outside parties Trial balances for both companies for the year ended December 31, 2014 are as follows (in thousands) Debits Epik Bhd Justin Bhd Cash Accounts receivable Dividends receivable $1,200 2,000 $ 800 300 21000 90 0 Inventory Land 1,000 2,300 2,500 1,200 3,474 6,200 200 1,300 Equipment Investment in Justin Bhd 500 0 3,900 Cost of sales Other expenses Dividends 400 200 $18,064 100 $9,600 Total Credits Accounts payable Dividends payable Common stock Retained Earnings $600 100 2,500 300 5,100 $9,600 $900 6,000 2764 8,400 18,064 Sales Total No dividends were paid by Justin Bhd during the year. REOUIRED: Prepare consolidation workpapers for Epik Bhd and Subsidiarry for the year ended December 31, 2014