Wealthy Manufacturing Company purchased 40 percent of the voting shares of Diversified Products Corporation on March...

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Wealthy Manufacturing Company purchased 40 percent of the voting shares of Diversified Products Corporation on March 23, 20X4. On December 31, 20X8, Wealthy Manufacturing's controller attempted to prepare income statements and retained earnings statements for the two companies using the following summarized 20X8 data: Net Sales Cost of Goods Sold Other Expenses Dividends Declared & Paid Retained Earnings, 1/1/X8 Wealthy Manufacturing $ 850,000 670,000 90,000 30,000 420,000 Diversified Products $ 400,000 320,000 25,000 10,000 260,000 Wealthy Manufacturing uses the equity method in accounting for its Investment in Diversified Products. The controller was also aware of the following specific transactions for Diversified Products In 20X8, which were not Included in the preceding data: 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 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. 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. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Prepare an income statement for Diversified Products for 20X8. Wealthy Manufacturing Company purchased 40 percent of the voting shares of Diversified Products Corporation on March 23, 20X4. On December 31, 20X8, Wealthy Manufacturing's controller attempted to prepare income statements and retained earnings statements for the two companies using the following summarized 20X8 data: Net Sales Cost of Goods Sold Other Expenses Dividends Declared & Paid Retained Earnings, 1/1/X8 Wealthy Manufacturing $ 850,000 670,000 90,000 30,000 420,000 Diversified Products $ 400,000 320,000 25,000 10,000 260,000 Wealthy Manufacturing uses the equity method in accounting for its Investment in Diversified Products. The controller was also aware of the following specific transactions for Diversified Products In 20X8, which were not Included in the preceding data: 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 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. 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. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Prepare an income statement for Diversified Products for 20X8.