Cost method, second year, eliminations, income statement. The trial balances of Parker and Sargent companies of Exercise 7 for December 31, 2016, are presented as follows: Parker Company continues to...

Cost method, second year, eliminations, income statement. The trial balances of Parker and Sargent companies of Exercise 7 for December 31, 2016, are presented as follows:

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.