Additional information:

1. Portland Corporation acquired 80 percent of Sand for $3,200,000 on January 1, 2018, when Sands stockholders equity at book value was $2,800,000.

2. The excess of the cost of Portlands investment in Sand over book value acquired was allocated $120,000 to undervalued inventories that were sold in 2018, $160,000 to undervalued equipment with a four-year remaining useful life, and the remainder to goodwill.

Required: Prepare a consolidated income statement for Portland Corporation and Subsidiary for the year ended December 31, 2020.

2) At December 31, 2020, The Comparative income statements of Portland Corporation and Sand Corporation shows the following (in thousands): Portlan Sand d Sales $6,400 $2,600 Income from Sand 768 Total revenue 7,168 2,600 Less: Cost of goods sold 3,600 800 Operating expenses 1,600 800