The trial balances of Panther and Sargo companies of Exercise for December 31, 2012, are presented as follows:

Panther Company continues to use the sophisticated equity method.
1. Prepare all the eliminations and adjustments that would be made on the 2012 consolidated worksheet.
2. If you did not solve Exercise 4, prepare the 2012 consolidated income statement and its related income distribution schedules.

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Sargo Current Assets Depreciable Fixed Assels Accumulated Depreciation Investment in Sargo Company Current Liabilities. Common Stock ($10 par) Retained Earnings, January 1, 2012 130,000 400,000 115,000 200,000 .(130,000) 40,000) 282,400 (80,000) (200,000 100,000) 85,000 Expenses Subsidiary Income (from Sargo Company) Dividends Declared 160,000 7,200) 10,000 Totals