A parent company purchased an 80% interest in its subsidiary several years ago with no AAP (i.e., purchased at book value). Each reports the following income statement for the current year.

	Parent	Subsidiary
Income statement:
Sales	$11,500,000	$1,725,000
Cost of goods sold	(8,050,000)	(1,035,000)
Gross profit	3,450,000	690,000
Income (loss) from subsidiary	193,200	0
Operating expenses	(2,185,000)	(448,500)
Net income	$1,458,200	$241,500

a. Compute the Income (loss) from subsidiary of $193,200 reported by the parent company.

Net incomeNet income attributable to noncontrolling interestsNet income attributable to parentNet income of subsidiaryParent's ownership percentage
Net incomeNet income attributable to noncontrolling interestsNet income attributable to parentNet income of subsidiaryParent's ownership percentage		%
Income (loss) from subsidiary

b. Prepare the consolidated income statement for the current year.

Do not use negative signs with your answers.

Consolidated Income Statement
Sales
Cost of goods sold
Gross profit
Income (loss) from subsidiary
Operating expenses
Net incomeNet income attributable to noncontrolling interestsNet income attributable to parentNet income of subsidiary
Net incomeNet income attributable to noncontrolling interestsNet income attributable to parentNet income of subsidiary
Net incomeNet income attributable to noncontrolling interestsNet income attributable to parentNet income of subsidiary