1. Prepare a Consolidated Income Statement for Smith and Subsidiary for the year Ended December 31, 2020. You may choose the single-step format or the multiple-step format. Please show all entries for the additional information.

Smith Co. owns 80% of the common stock of Cooper Inc. Here is information taken from the consolidation worksheets for Smith and Cooper for the years ended December 31, 2019 and 2020 2019 2020 Revenues $ 1,489,600 $ 1,689,200 Gain on Sale of Building 28,000 Cost of Goods Sold (999,600) (1,058,400) Depreciation and Amortization (176,400) (140,000) Interest Expense (58,800) (58,800) Income tax expense (72,800) (138,000) Consolidated Net Income $ 182,000 $ 322,000 Net Income to the Noncontrolling Inter $ 12,600 S 15,400 Net Income to the Controlling Interest $ 169,400 $ 306,600 Retained Earnings, Jan. 1 $ 420,000 $ 519,400 Net Income 169,400 306,600 Dividends Declared (70,000) (140,000) Retained Earnings, Dec. 31 $ 519,400 $ 686,000 Cash $ 112,000 $ 194,000 Accounts Receivable 210,000 198,000 Inventory 280,000 476,000 Buildings and Equipment (Net) 896,000 966,000 Database 210,000 203,000 Total Assets $ 1,708,000 $2,037,000 Accounts Payable $ 196,000 $ 140,000 Bonds Payable 560,000 720,000 Noncontrolling interest in Cooper, Inc. 44,800 57,400 Common stock, $2 par value 140,000 168,000 Additional Paid-in Capital 247,800 265,600 Retained Earnings, Dec. 31 519,400 686,000 Total Liabilities and Stockholders' Equ $ 1,708,000 $2,037,000 Additional Information: 1. During 2020, Smith issued bonds for cash. 2. Amortization of a database acquired in the original combination amounted to $7,000 3. On May 11, 2020, Smith Company sold a building for cash. The cost of the building was $84,000 and it had a book value of a $42,000 at the date of sale. 4. Cooper purchased equipment on July 23, 2020 using cash. 5. On October 1, 2020, Smith issued common stock for cash. 6. During 2020, Cooper paid dividends of $14,000. Smith Co. owns 80% of the common stock of Cooper Inc. Here is information taken from the consolidation worksheets for Smith and Cooper for the years ended December 31, 2019 and 2020 2019 2020 Revenues $ 1,489,600 $ 1,689,200 Gain on Sale of Building 28,000 Cost of Goods Sold (999,600) (1,058,400) Depreciation and Amortization (176,400) (140,000) Interest Expense (58,800) (58,800) Income tax expense (72,800) (138,000) Consolidated Net Income $ 182,000 $ 322,000 Net Income to the Noncontrolling Inter $ 12,600 S 15,400 Net Income to the Controlling Interest $ 169,400 $ 306,600 Retained Earnings, Jan. 1 $ 420,000 $ 519,400 Net Income 169,400 306,600 Dividends Declared (70,000) (140,000) Retained Earnings, Dec. 31 $ 519,400 $ 686,000 Cash $ 112,000 $ 194,000 Accounts Receivable 210,000 198,000 Inventory 280,000 476,000 Buildings and Equipment (Net) 896,000 966,000 Database 210,000 203,000 Total Assets $ 1,708,000 $2,037,000 Accounts Payable $ 196,000 $ 140,000 Bonds Payable 560,000 720,000 Noncontrolling interest in Cooper, Inc. 44,800 57,400 Common stock, $2 par value 140,000 168,000 Additional Paid-in Capital 247,800 265,600 Retained Earnings, Dec. 31 519,400 686,000 Total Liabilities and Stockholders' Equ $ 1,708,000 $2,037,000 Additional Information: 1. During 2020, Smith issued bonds for cash. 2. Amortization of a database acquired in the original combination amounted to $7,000 3. On May 11, 2020, Smith Company sold a building for cash. The cost of the building was $84,000 and it had a book value of a $42,000 at the date of sale. 4. Cooper purchased equipment on July 23, 2020 using cash. 5. On October 1, 2020, Smith issued common stock for cash. 6. During 2020, Cooper paid dividends of $14,000