Answer all the required question for a rate. Please show the solutions.

Problem 2 Pluto Corporation owns 80% of the outstanding stock of Star Company, having acquired its interest at book value when Star Company was incorporated on January 2, 2016. Comparative statement of Consolidated Income for Pluto and Star for 2016 and 2017 are as follows: 2017 2016 Pluto Star Pluta Star P200,000 P600,000 P250,000 P500,000 10,000 5,000 40,000 P550.000 40,000 P640,000 P200.000 P255,000 Statement of Consolidated Income Sales Gain on sale of equipment Gain on sale of land Dividend Income Total Revenue Cost of goods sold: Inventory. 1/1 Purchases Goods available for sale Inventory. 12/31 Cost of goods sold Gross Profit Operating expenses CONSOLIDATED INCOME 80,000 300,000 380,000 70,000 310,000 240.000 80,000 P160,000 40,000 100,000 140,000 50,000 90,000 110,000 60,000 P 50,000 70,000 400,000 470,000 90.000 380,000 260,000 100,000 P160,000 50,000 120,000 170,000 60,000 110,000 145,000 80,000 P 65,000 Additional information 1. Pluto Corporation uses the cost method of accounting for its investment in Star. 2. The P10,000 gain relates to equipment sold to Star on January 2, 2016. Star still held the equipment on December 31, 2017 and depreciating it at the rate of 20% per year. The P5,000 gain relates to land sold to Pluto on January 2, 2017. 3. Intercompany sales and inventory data for 2016 and 2017 are as follows: 2017 2016 P40,000 P50,000 Sales by Pluto to Star Sales by Star to Pluto Unrealized profit in Star's Dec. 31, inventory Unrealized profit in Pluto's Dec. 31, inventory P8,000 P10,000 Required: Prepare comparative 2016 and 2017 consolidated statement of Cl for Pluto Corporation and Subsidiary Star Company. You may present cost of goods sold in single line