2) Individual statements of income and retained earnings for Company X and its 100% owned subsidiary Company Y for the year 2020 are: Y Sales ..... Cost of goods sold. Gross profit.... Operating expenses: Income from operations Dividend income... Net income... $ 12,000 (8,200) 3,800 (2,900) 900 80 980 $ 4,000 (2,800) 1,200 (900) 300 $ 300 $ MEN SH Dividends declared. Increase in retained earnings Retained earnings, 1/1/20 Retained earnings, 12/31/20.... $ (400) 580 1,600 $ 2, 180 (80) 220 750 970 HERRE $ 1 Additional Information: 1. Company X purchased 100% of Company Y's capital stock on January 2, 2020, for $1,250 (which was the book value of Company Y on that date); Company Y has not issued additional capital stock since its acquisition by Company X. 2. Intercompany sales (from Company X to Company Y) during the year were $800; the cost of these sales to Company X was $540. 3. Don December 31, 2020, Company Y's inventory included $90 of inventory items pur- chased from Company X, the cost of these items to Company X was $60. 4. The $80 of dividend income reported by Company X during the year was received from its 100% owned subsidiary Company Y. 5. There were no other intercompany transactions during the year. After preparing a consolidated statement of income and retained earnings for the year 2020, indicate whether the following statements are "True" or "False by circling your answers below (each answer is worth 2 points): A) TF Consolidated sales for the year 2020 are $15,200. B) T F Consolidated gross profit for the year 2020 is $4,740. C) T F Consolidated net income for the year 2020 is $1.170. D) T F The consolidated retained earnings balance at December 31, 2020, is $2,370. E) TF Dividends declared reported on the consolidated statement of income and re- tained earnings for the year 2020 are $480