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 undervalue inventoyr items were sold by Seldane during 2009 and the undervalued equipment
has a remaning useful life of five years . Straight line depreciaion is used
Seldane owed Plastick $ 6,000 on accounts payable at Decemvber 31, 2009
The separate financial statements of Plastik 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 receivavables					8
Inventories					40	30
Land					15	30
Builidng -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) Preprare Consolidated statements for Plastik and Seldane for the year ended
December 31,2009
b) Prepare all the investor entries made during the year
c) Prepar all consolidating /eliminating entries