On January 2, Year 5, Road Ltd. acquired 70% of the outstanding voting shares of Runner Ltd. The acquisition differential of $640,000 on that date was allocated in the following manner: The Year 9 income statements for the two companies were as follows: Additional Information - Runner regularly sells raw materials to Road. Intercompany sales in Year 9 totalled $510,000. - Intercompany profits in the inventories of Road were as follows: - Road's entire rental expense relates to equipment rented from Runner. - A goodwill impairment loss of $3,000 occurred in Year 9. - Retained earnings at December 31, Year 9, for Road and Runner were $2,526,600 and $1,240,000, respectively. - Road uses the equity method to account for its investment, and uses income tax allocation at the rate of 40% when it prepares consolidated statements. Required: (a) Prepare a consolidated income statement for Year 9 with expenses classified by nature. (Input all amounts as positive number except for Change in work-in-progress and finished goods inventory that must be entered with appropriate sign. Omit \$ sign in your response.) (b) Calculate consolidated retained earnings at December 31, Year 9. (Omit $ sign in your response.) Consolidated retained earnings $ (c) This part of the question is not part of your Connect assignment