Prather Company owns 80% of the common stock of Stone Company. The stock was purchased for $960,000 on January 1, 2009, when Stone Companys retained earnings were $675,000. On January 1, 2011, Stone Company sold fixed assets to Prather Company for $960,000; Stone Company had purchased these assets for $1,350,000 on January 1, 2001, at which time their estimated useful life was 25 years. The estimated remaining useful life to Prather Company on 1/1/11 is 10 years. Both companies employ the straight-line method of depreciation. The financial data for 2012 are presented here: Prather Company Stone Company Sales $1,950,000 $1,350,000 Equity in Subsidiary Income 252,000 Total Revenue 2,202,000 1,350,000 Cost of Goods Sold 1,350,000 900,000 Other Expenses 225,000 150,000 Total Cost and Expense 1,575,000 1,050,000 Net Income $ 627,000 $ 300,000 1/1 Retained Earnings $1,397,400 $1,038,000 Net Income 627,000 300,000 Dividends Declared (150,000) (75,000) 12/31 Retained Earnings $1,874,400 $1,263,000 Inventory $ 498,000 $ 225,000 Investment in Stone Company 1,334,400 Fixed Assets 2,168,100 2,625,000 Accumulated DepreciationFixed Assets (900,000) (612,000) Total Assets $3,100,500 $2,238,000 Liabilities $ 465,600 $ 450,000 Common Stock 760,500 525,000 Retained Earnings 1,874,400 1,263,000 Total Liabilities and Equity $3,100,500 $2,238,000 Required: A. Prepare a consolidated statements workpaper for the year ended December 31, 2012.