30. Computing the amount of equity income and preparing (I) consolidation entries-Equity method Assume a parent company sells inventory to its wholly owned subsidiary. The subsidiary, ultimately, sells the inventory to customers outside of the consolidated group. You have compiled the following data for the years ending 2018 and 2019: Subsidiary Net Income Intercompany Inventory Sales Gross Profit on Unsold Inventories Receivable (Payable) 2019............ 2018.... $400,000 $300,000 $50,000 $60,000 $18,000 $20,000 $20,000 $25,000 Assume inventory not remaining at the end of the year was sold outside of the consolidated group. The subsidiary paid $100,000 in dividends during 2019. a. How much Income (loss) from subsidiary should the parent report in its pre-consolidation income statement the year ending 2019 assuming that it uses the equity method of accounting for its Equity Investment? b. Prepare the required Il consolidation entries for 2019