$($a$)$ Prepare a schedule to compute equity in net income of Saxon for $2013,$ and the December $31,2013,$ balance for the Investment in Saxon, as reported on Paxon's books.

Instructions:$$

Enter all answers in millions.$$Round all answers to the nearest million, when appropriate.

Use negative signs with answers that reduce equity in net income and the investment account balance.$$

$($b$)$ Use a working paper to consolidate the trial balances of Paxon and Saxon at December $31,2013.$

Remember to use negative signs with your credit balance answers in the Consolidated$$Balances column.

$($c$)$ Prepare the consolidated balance sheet and statement of income and retained earnings at December $31,2013.$

INSTRUCTIONS:$$Do$$not use negative signs$$with any of your answers below for the balance sheet and income statement.

HINT:$$The answer for Retained Earnings is $$4,877.$