Pretzel Corporation acquired an 80% interest in Salt Corporation at a cost equal to 80% of the book value of Salt's net assets several years ago.  At the time of purchase, the fair value and book value of Salt's assets and liabilities were equal.  Pretzel purchases its entire inventory from Salt at 150% of Salt's cost.  During 2011, Salt's sales to Pretzel were $190,000.  Pretzel's beginning and ending inventories for 2011 were $72,000 and $66,000, respectively.  Income statement information for both companies for 2011 is as follows:

                                                             Pretzel            Salt

Sales revenue                                      820,000                   440,000

Investment income from Salt               145,600

Cost of goods sold                             (460,000)               (165,000)

Expenses                                            (120,000)                 (95,000)

Net income                                          385,600                  180,000

Required: Prepare a consolidated income statement for Pretzel Corporation and Subsidiary for 2011 and record the three eliminating entries.