Equity-Method Income Statement using the following summarized 20X8 data: Wealthy Manufacturing Company purchased 40 percent of the voting shares of Diversified Prod ucts Corporation on March 23, 20X4. On December 31, 20X8, Wealthy Manufacturing's control ler attempted to prepare income statements and retained earnings statements for the two companies Products. The controller was also aware of the following specific transactions for Diversified Prod. Wealthy Manufacturing uses the equity method in accounting for its investment in Diversified 1. Diversified sold its entire Health Technologies division on September 30, 20X8, for $375,000. The book value of Health Technologies division's net assets on that date was $331,000. The b. Compute P2-26A Diversified Products $400,000 320,000 Net Sales 25.000 Cost of Goods Sold Other Expenses 10,000 Dividends Declared & Paid 260,000 Retained Earnings, 1/1/X8 ucts in 20x8, which were not included in the preceding data: division incurred an operating loss of $15,000 in the first nine months of 20X8. 2. During 20X8, Diversified sold one of its delivery trucks after it was involved in an accident and recorded a gain of $10,000. Wealthy Manufacturing $850,000 670,000 90,000 30,000 420,000 Required a. Prepare an income statement and retained earnings statement for Diversified Products for 20X8. b. Prepare an income statement and retained earnings statement for Wealthy Manufacturing for 20X8