On January 1, Year 4, Goodkey Co. acquired all of the common shares of Jingya. The condensed income statements for the two companies for January Year 5, were as follows Goodkey Jingya Sales Gain on sale of equipment Other income $ 10,500,000 850,000 11,350,000 $ 6,050,000 250,000 55,000 6,355,000 Depreciation expense Other expenses Income tax expense 500,000 6,650,000 1,995,000 185,000 4,350,000 546,000 9,145,000 5,081,000 Net income $ 2,205,000 S 1,274,000 The following transactions occurred in January, Year 5, and are properly reflected in the income statements On January 1, Year 5, Jingya sold equipment to Goodkey for $1,050,000 and reported a gain of .On January 31, Year 5, Jingya paid a dividend of $650,000. Goodkey uses the cost method to account above $250,000. On this date, the equipment had a remaining useful life of four years for its investment in Jingya. Both companies pay income tax at the rate of 40% Required (a) Prepare a consolidated income statement for January Year5 (b) Now assume that Goodkey uses the equity method to account for its investment in Jingya. What accounts would change on the three income statements (Goodkey, Jingya, and consolidated) in January Year 5, and what would be the account balances? (c) Now assume that Goodkey only owns 80% of the common shares of Jingya and uses the cost method to account for its investment in Jingya. What accounts would change (as compared to part (a)) on the three income statements (Goodkey, Jingya, and consolidated) in January Year 5, and what would be the account balances