The separate incomes (which do not include investment income) of Pic Corporation and Sil Corporation, its 80 percentowned subsidiary, for 2011 were determined as follows (in thousands):

During 2011, Pic sold merchandise that cost $40,000 to Sil for $80,000, and at December 31, 2011, half of these inventory items remained unsold by Sil.REQUIRED: Prepare a consolidated income statement for Pic Corporation and Subsidiary for the year ended December 31,2011.

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Pic Sil Sales Less: Cost of sales Gross profit Other expenses Separate incomes $800 400 400 $200 80 120 60 200 $ 60 $200