3) Plower Corporation acquired all of the outstanding voting common stock of the Squab Corporation several years ago when the book values and fair values of Squab's net assets were equal.

On April 1, 2012, Plower sold land that cost $25,000 to Squab for $40,000. Squab resold the land for $45,000 on December 1, 2014.

On July 1, 2014, Plower sold equipment with a book value of $10,000 to Squab for $26,000. Squab is depreciating the equipment over a four-year period using the straight-line method. The equipment has no salvage value.

Required:

The first two columns in the working papers presented below summarize income statement information from the separate company financial statements of Plower and Squab for the year ended December 31, 2014. Fill in the consolidated working paper columns to show how each of the items from the separate company reports will appear in the consolidated income statement for the year ended December 31, 2014.

	Plower	Squab	Consolidated
Sales	450,000	200,000
Invest. income from Squab	57,000
Gain on sale of equipment	16,000
Gain on sale of land		5,000
Cost of sales	(211,500)	(91,500)
Depreciation expense	(45,500)	(23,500)
Other expenses	(120,000)	(34,000)
Net income	146,000	56,000