changes in Problem 6-11 LO2 The partial trial balances of P Co. and S Co. at December 31, Year 10, were as follows: S Co. P Co. Dr. Cr. Dr. Cr. Investment in S. Co. 90,000 60,000 Common shares 150,000 44,000 Retained earnings, beginning of year 113,000 Additional Information The investment in the shares of S Co. (a 90% interest) was acquired January 2, Year 6, for $90,000. At that time, the shareholders' equity of S Co. was common shares of $60,000 and retained earnings of $20,000 and the common shares for P Co. of $150,000. Net incomes of the two companies for the year were as follows: P Co. $60,000 S Co. 48,000 During Year 10, sales of P Co. to S Co. were $10,000, and sales of S Co. to P Co. were $50,000. Rates of gross profit on intercompany sales in Years 9 and 10 were 40% of sales. On December 31, Year 9, the inventory of P Co. included $7,000 of merchandise purchased from S Co., and the inventory of S Co. included $3,000 of merchandise purchased from P Co. On December 31, Year 10, the inventory of P Co. included $20,000 of merchandise purchased from S Co., and the inventory of S Co. included $5,000 of merchandise purchased from P Co. During the year ended December 31, Year 10, P Co. paid dividends of $12,000, and S Co. paid dividends of $10,000. At the time that P Co. purchased the shares of S Co., the acquisition differential was allocated to patents of S Co. These patents are being amortized for consolidation purposes over a period of five years. P Co. . In Year 8, land that originally cost $40,000 was sold by S Co. to P Co. for $50,000. The land is still owned by Assume a corporate tax rate of 40%. Required Prepare a consolidated statement of changes in equity for the year ended December 31, Year 10