Shown below are selected ledger accounts from the trial balance of a parent and its subsidiary as of December 31, Year 10. P ('0. 5 ('0. Investment in bonds of P 5 5 37,800 Investment in shares of S (equity method] 141,399 Sales 536,800 343,800 Interest income - 2,350 Equityr method income 183,639 Gain on sale of land 3,500 Common shares 308,800 188,800 Retained earnings, beginning of year 51,800 31,800 Bonds payable 851': 192,800 Cost of sales 331,600 203,300 Interest expense 12,500 Selling and administrative expense 31,800 15,500 Income tax expense 32,800 3,340 Dividends 18,800 3,800 [ Additional information: P Company purchased its 90% interest in 5 Company in Year 2, on the date that 8 Company was incorporated, and has followed the equity method to account for its investment since that date. - On April 1, Year 6, land that had originally cost $12,500 was sold by 8 Company to P Company for $16,000. P purchased the land with the intention of developing it, but in Year 10 it decided that the location was not suitable and the land was sold to a chain of drug stores. - On January 1, Year 3, P Company issued $200,000 face value bonds due in 10 years. The proceeds from the bond issue amounted to $185,000. - On July 1, Year 10, 8 Company purchased $40,000 ofthese bonds on the open market at a cost of $36,250. Intercompany bondholding gains [losses] are allocated between the two afliates. - 5 Company had $42,000 in sales to P Company during Year 10. - Use income tax allocation at a 40% tax rate. Required: [a] Prepare a consolidated income statement for Year 10. Round your nal answers to nearest WhDIE dollar.) Total revenues Total expenses {b} Prepare a consolidated statement c-frete'lnecl earnings for Year '10.: response-J P Cu. Consolidated Retained Earnings Statement 1Il'ear' 19 [Click to select} 5 (Click to select} v {Click to select} v {Click to select} v s |:|