Workpapers (year of acquisition, fair value/book value differentlals, Intercom- pany balances) Pik Corporation acquired 80 percent of Sel Corporation's common stock on January 1,2011, for $420,000 cash. The stockhoiders' equity of Sel at this time consisted of S300,000 capital stock and S100,000 retained earnings. The difference between the fair value of Sel and the underlying equity ac- quired in Sel was due to a S25,000 undervaluation of Sel's inventory, a S50,000 undervaluation of Sel's equipment, and goodwil. The undervalued inventory was sold by Sel during 2011, and the undervalued equipment had a remaining useful life of five years. Suraight-line depreciation is used. Sel owed Pik $8,000 on accounts payable at December 31, 201. The separate financial statements of Pik and Sel Corporations at and for the year ended December 31, 2011, are as follows (in housands): Sel Combined Income and Retained Earnings Statements for the Year Ended December 31 S 400 36 (160) S220 Income from Se Cost of sales (40) Other expenses Net income Add: Retained earnings January l Deduct: Dividends (51) 145 150 100 19 5(40 Retained earnings December 31 Balance Sheet at December 31 215 S 59 56 16 S 60 Trade rectivables-net Dividends rectivable 60 30 130 140 Investment in Se Total assets 424 Accounts payable Dividends payable Other liabilities Capital stock, S10 par Retained earnings Sel S100 40 140 S 80 200 100 215 Total equities REQUIR ED: Prpare consolidaionkas or Pik Corporation and Sel at and for the year ended December 31, 2011