The separate incomes (which do not include investment income) of Pycus Corporation and Sylvia Corporation, its 80%-owned subsidiary, for 2006 were determined as follows (in thousand): Sylvia $100 60 Sales Less: Cost of sales Gross profit Other expenses Separate incomes Pycus $400 200 200 100 100 40 30 10 During 2006, Pycus sold merchandise that cost $20,000 to Sylvia for $40,000, and at December 31, 2006, half of these inventory items remained unsold by Sylvia. Required: a. Prepare journal entries for Pycus and Sylvia that are related to sales. Assume that Sylvia sells all of its merchandise for the same price. b. Prepare a consolidated income statement for Pycus Corporation and Subsidiary for the year ended December 31, 2016. Adjustment entries should be provided too