Company P acquired 70% of the 100,000 outstanding common stock of Company S on 1 January 2015. The acquisition price included a $30,000 control premium. On the date of acquisition, an equipment was undervalued by $42,000 in the books of Company S. The equipment has a remaining useful life of 10 years. The remaining excess fair value was attributed to Goodwill. Company P accounted for the investment using the partial equity method. Between 1 January 2015 and 1 January 2018, the Investment in Company S account has increased by $89,180. Company S did not issue any new common stock during the period 2015-2018. On 1 January 2018, Company P reported $280,000 in bonds outstanding with a book value of $263,200. These bonds carry a coupon rate of 10%. Company S purchased half of these bonds on the open market for $135,800. During 2018, Company P sold to Company S merchandise inventory costing $112,000 at a price of $140,000. All but $14,000 of these goods were resold to outside parties by the end of 2018. Company S still owed $50,400 for inventory shipped from Company P during December. Company P has convertible bonds that were issued at face value in 2016. These are 6% bonds that can be converted into 15,000 common stock(shares). Company S has convertible bonds that were issued at face value in 2017. These are 7% bonds that can be converted into 14,000 common stock(shares). Company P has 500,000 common stock(shares) outstanding by the end of 2018. Ignore tax rate. The following is selected financial statements for Company P and Company S at 31 December 2018. Асcount Company P Company S Revenues 894,600 652,400 Cost of Goods Sold 483,000 277,200 Expenses (including interest expense of convertible bonds) Interest Expense -Bonds 187,600 225,400 33,600 NA Interest Income -Bond Investment NA 15,400 Equity in Company S Income ?? NA Net Income ?? ?? R/E @ 1 January 2018 307,200 505,400 Net Income ?? ?? Dividends Paid 217,000 85,400 RE @ 31 December 2018 ?? ?? Cash & Receivables 186,200 109,200 Inventory 239,400 121,800 Investment in Company S 625,840 NA Investment in Company P Bonds NA ?? Land, Buildings, & Equipment(net) 348,600 757,400 Total Assets ?? ?? Accounts Payable 115,000 132,400 200,000 100,000 Bands Payable (Convertible) Bonds Payable 280,000 140,000 Discount on Bonds Payable ?? NA Common Stock 420,000 168,000 R/E @ 31 December 2018 ?? ?? Total Liabilities & Stockholders' Equity ?? ?? Required: 1. Using a worksheet format, prepare the Consolidated Financial Statements for year 2018, [Show all your calculations]