P 5-6 Upstream and Downstream Sales, 90 percent owned Justin Bhd is a 90 percent owned company of Epik Bhd acquired in 2011 when the book value of Justin Bhd net identifiable assets were equal to its fair value. The information regarding inventory transactions between Justin Bhd and Epik Bhd is as follows: In 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 percent. At the end of the year, $100,000 inventories from Epik Bhd have not been sold to outside parties. The trial balances for both companies for the year ended December 31, 2014 are as follows (in thousands): Debits Epik Bhd Justin Bhd Cash $ 1,200 $ 800 Accounts receivable $ 2.000 $ 300 Dividends receivable $ 90 $ 0 Inventory $ 1.000 $ 2.300 Land $ 2,500 $ 1,300 Equipment $ 1,200 $ 500 Investment in Justin Bhd $ 3,474 $ 0 Cost of sales $ 6,200 $ 3,900 $ 200 $ 400 Dividends s 200 $ 100 Total $ 18,064 $ 9,600 Other expenses Credits Accounts payable Dividends payable Common stock Retained Earnings Sales Total 900 0 6,000 $ 2.764 S 8.400 $ 18,064 $ 600 $ 100 $ 2,500 $ 1.300 $ 5,100 $ 9,600 All dividends by Justin Bhd have not been paid during the year. REQUIRED: Prepare consolidation workpapers for Epik Bhd and subsidiary for the year ended December 31. 2014