On January 2 , Year 5 , Road Ltd. acquired 70% of the outstanding voting shares of Runner Ltd. The acquisition differential of $520,000 n 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 $480,000. - Road's entire rental expense relates to equipment rented from Runner. - 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. (b) Calculate consolidated retained earnings at December 31, Year 9. (c) If Road had used the identifiable net assets method rather than the fair value enterprise method, how would this affect the return on equity attributable to shareholders of Road for Year 9? Briefly explain