Consider the following for Ferchland Company (the parent) as of December 31, 20X8:

The $800,000 in assets held by Ferchland includes an $84,000 investment in the 70% owned subsidiary. The $84,000 includes Ferchland’s pro rata share of the subsidiary’s net income for 20X8. Ferchland’s sales were $890,000 and operating expenses were $802,000. These figures exclude any pro rata share of the subsidiary’s net income. The subsidiary’s sales were $550,000 and operating expenses were $500,000. Prepare a consolidated income statement and a consolidated balance sheet. Assume neither Ferchland nor its subsidiary sold items to theother.

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Assets Liabilities to creditors Stockholders' equity Total +70% owned by Ferch!and. Ferchland $800,000 $300,000 500,000 $800,000 Subsidiary* $200,000 $80,000 120,000 $200,000