Johnson Inc. is the wholly owned subsidiary of Stuart Corporation. The 2020 income statements for the two corporations are as follows:

The acquisition cost of Stuart's 100% ownership interest in Johnson equaled its book value on Johnson's records. During 2020, Johnson pays a cash dividend of $25 to Stuart.
Required:
1. Calculate the income from investment in Johnson as reported on Stuart's income statement.
2. Calculate the 2020 net income reported by the parent company (Stuart) on its income statement.
3. Prepare the 2020 consolidated income statement for Stuart and Johnson.

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Stuart Johnson Sa les revenue Sales revenue $3,200 $500 Income from investment in Johnson Total revenue Cost of goods sold Depreciation ex pense Total revenue Cost of goods sold Depreciation expense Other expenses Net income $500 $160 95 135 $920 410 Other expenses Net income 2,010 390 680 $110