A parent company purchased a 70% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $255,000 in excess of the subsidiary's Stockholders' Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $153,000 and to an unrecorded Trademark valued at $102,000. The building asset is being depreciated over a 10-year period and the Trademark is being amortized over a 6-year period, both on the straight-line basis with no salvage value. During the current year, the parent and subsidiary reported a total of $340,000 of intercompany sales. At the beginning of the current year, there were $59,500 of upstream intercompany profits in the parent's inventory. At the end of the current year, there were $42,500 of downstream intercompany profits in the subsidiary's inventory. During the current year, the subsidiary declared and paid $85,000 of dividends. The parent company uses the cost method of pre- consolidation investment bookkeeping. Each company reports the following income statement for the current year: Preparing a consolidated income statement-Cost method with noncontrolling interest, AAP and upstream and downstream intercompany inventory profits Income statement: Sales Cost of goods sold Gross profit Income (loss) from subsidiary Operating expenses Net income Parent Subsidiary $10,200,000 $1,105,000 (5,950,000) (552,500) 4,250,000 552,500 59,500 (2,125,000) (314,500) $2,184,500 $238,000 a. Starting with the parent's current-year pre-consolidation net income of $2,184,500, compute the amount of current-year net income attributable to the parent that will be reported in the consolidated financial statements. b. Prepare the consolidated income statement for the current year.