The following are the Year 9 income statements of Kent Corp. and Laurier Ltd.

Additional Information
€¢ Kent acquired its 40% interest in the common shares of Laurier in Year 3 at a cost of $825,000 and uses the cost method to account for its investment for internal record keeping.
€¢ The acquisition-differential amortization schedule pertaining to Kent€™s 40% interest showed the following write-off for Year 9:
Buildings................ $9,000
Goodwill impairment loss.......... 13,000
.................... 22,000
Long-term liabilities............ 12,500
Acquisition-differential amortization€”Year 9... $9,500
€¢ Depreciation expense and goodwill impairment loss are included with selling and administrative expenses.
€¢ In Year 9, rent amounting to $125,000 was paid by Laurier to Kent. Kent has recorded this as other income.
€¢ In Year 6, Kent sold land to Laurier and recorded a profit of $75,000 on the transaction. During Year 9, Laurier sold 30% of the land to an unrelated land development company.
€¢ During Year 9, Laurier paid dividends totalling $80,000.
€¢ It has been established that Kent€™s 40% interest would not be considered control in accordance with IFRSs.
€¢ Assume a 40% tax rate.
Required:
(a) Assume that Kent is a public company and Laurier is a joint venture that is owned by Kent and two other unrelated venturers. Also assume that Kent acquired its interest after Laurier€™s initial formation, and that the acquisition differentials are therefore valid. Prepare the income statement of Kent for Year 9 using the equity method (show all calculations).
*(b) Assume that Kent is a private company and Laurier is a joint venture. Prepare Kent€™s consolidated income statement for Year 9 using proportionate consolidation. (Show all calculations.)

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INCOME STATEMENTS for the Year Ended December 31, Year 9 Kent Laurie Sales Other income Gain on sale of land $3,000,000 $1,200,000 70,000 100,000 1,370,000 1,400,000 60 000 300,000 130,000 150,000 1,140,000 S 230,000 200,000 3,200,000 Cost of sales Selling and administrative expenses Other expenses Income tax 500,000 100,000 400,000 2,400,000 S 800,000 Net income