Exercise 8 (LO 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: Current Assets Depreciable Fixed Assets Accumulated Depreciation Investment in Sargent Company Current Liabilities.... Common Stock ($10 par) Retained Earnings, January 1, 2016.. Sales. Expenses. Dividend Income (from Sargent Company) Dividends Declared.. Totals.. Parker Sargent 102,000 115,000 400,000 200,000 (130,000) (40,000) 300,000 (80,000) (300,000) (100,000) (244,000) (170,000) (200,000) (100,000) 160,000 85,000 (8,000) 10,000 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.