Akron, Inc., owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per year for patented technology resulted from the original acquisition. For 2021, the companies had the following account balances:

LO 5-3, 5-4, 5-5

AKRONTOLEDOSALES$1,100,000$600,000COST OF GOODS SOLD$500,000$400,000OPERATING EXPENSES$400,000$220,000INVESTMENT INCOMENOT GIVEN-0-DIVIDENDS DECLARED$80,000$30,000

Intra-entity sales of $320,000 occurred during 2020 and again in 2021. This merchandise cost $240,000 each year. Of the total transfers, $70,000 was still held on December 31, 2020, with $50,000 unsold on December 31, 2021.

For consolidation purposes, does the direction of the transfers (upstream or downstream) affect the balances to be reported here?

Prepare a consolidated income statement for the year ending December 31, 2021.