Financial statements of Par Corp. and its subsidiary Star Inc. on December 31, Year 12, are shown below: BALANCE SHEETS At December 31, Year 12 Cash Accounts receivable Inventories Land Plant and equipment Accumulated depreciation Investment in Star common shares Par Star $ 48,000 $ 1,800 108,000 93,000 85,440 56,000 38,000 78,000 430,000 780,000 (188,000) 219,800 (308,000) $ 741,240 $ 700,800 $ 95,200 $ 188,000 Accounts payable Accrued liabilities Preferred shares Common shares Retained earnings 8,800 450,000 187,240 11,600 58,000 160,000 283,200 $ 741,240 $ 700,800 RETAINED EARNINGS STATEMENTS For the Year Ended December 31, Year 12 Balance, January 1 Par $197,240 Net income (loss) Dividends Balance, December 31 Star $330,200 22,000 (19,000) 219,240 311,200 (32,000) (28,000) $187,240 $283,200