The trial balances of Paper and Salt companies of 'Q.2' for December 31, 20X2, are presented as follows:

Paper

Salt

Current Assets

152,000

115,000

Depreciable Fixed Assets

400,000

200,000

Accumulated Depreciation

(130,000)

(40,000)

Investment in Salt Company

270,000

Current Liabilities

(80,000)

Common Stock (Br. 10 par)

(300,000)

(100,000)

Retained Earnings, January 1, 20X1

(260,000)

(170,000)

Sales

(200,000)

(100,000)

Expenses

160,000

85,000

Subsidiary Income

(12,000)

Dividends Declared

.

10,000

Total

0

0

Paper Company continued to use the equity method.

Required:

1. Prepare
2. the eliminations and adjustments that would be necessary to be made on the 20X2 consolidated worksheet.
3. Prepare the 20X2 consolidated income statement.