Exercise 8 (10 3) Cost method, second year, eliminations, income statement. The trial balances of Parker and Sargent companies of Exercise 7 for December 31, 2016, are pre- sented as follows: Parker Sargent Current Assets . . 102,000 1 15,000 Depreciable Fixed Assets 400,000 200,000 Accumulated Depreciation (130,000) (40,000) Investment in Sargent Company 300,000 Current Liabilities . . . . .. (80,000) Common Stock ($ 10 par) .. . . . (300,000) (100,000) Retained Earnings, January 1, 2016. . (244,000) (170,000) Sales . . . . .... (200,000) (100,000) Expenses ...... 160,000 85,000 Dividend Income (from Sargent Company) . . (8,000) Dividends Declared . . .. . . 10,000 Totals . .. 0 0 Parker Company continues to use the cost method. 1. Prepare all the eliminations and adjustments that would be made on the 2016 consolidated worksheet. 2. If you did not solve Exercise 4 or 6, prepare the 2016 consolidated income statement and its related income distribution schedules