Paris Corporation and Slater Company prepared the following statements of income and retained earnings on December 31

Question:

Paris and Slater Company prepared the following statements of income and retained earnings on December 31 of the current year:

Paris Corporation and Slater Company prepared the following statements of

Paris obtained its 80% interest in Slater 8 years ago when Slater had retained earnings of $53,000. The $100,000 acquisition differential on acquisition date was allocated entirely to intangible assets with an estimated remaining useful life of 10 years. Paris uses the cost method to account for its investment.
Required:
Prepare the following statements for the current year:
(a) Consolidated income statement
(b) Consolidated retained earnings statement

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