6-The separate income statements Hartford Corporation and its wholly owned subsidiary, Sacramento Co., for 2020 are presented below: Hartford Sacramento Sales Revenue $390,000 $68,250 Cost of Goods Sold 160,000 38,000 Gross Profit 230,000 30,250 Operating Expenses 80,000 16,000 Sacramento's net income $ 14,250 Hartford's net income from its own $150,000 operations Note that Hartford's income statement includes no investment-related accounting or adjustments for Sacramento. During 2020, Hartford sold merchandise costing $6,750 to Sacramento for $15,000. At the end of 2020, 40% of the merchandise remained unsold by Asbury. Required: Prepare a consolidated income statement for 2020. 5-Parent Co. acquired 100% of Sub, Inc. on January 1, 2021. During 2021, Parent sold goods to Sub for $260,000 that cost Parent $170,000. Sub still owned 30% of the goods at the end of the year. In their pre-consolidation books, cost of goods sold was $1,050,000 for Parent and $375,000 for Sub. Required: a. Prepare all consolidation entries related to inventory and cost of goods sold for 2021. b. Compute consolidated cost of goods sold for 2021. c. Assuming that the remainder of the inventory was sold to third parties during 2022, prepare the 2022 consolidation entry to recognize the previously deferred profit