Amgen Corporation acquired all of the outstanding voting common stock of the JNJ Corporation several years ago when the book values and fair values of JNJs net assets were equal.
														On April 1, 2000, Amgen sold land that cost $25,000 to JNJ for $40,000. Squab resold the land for $45,000 on December 1, 2006.
On July 1, 2006, Amgen sold equipment with a book value of $10,000 to JNJ for $26,000. Squab is depreciating the equipment over a four-year period using the straight-line method.
														Required:
														The first two columns in the working papers presented below summarize income statement information from the separate company financial statements of Amgen and JNJ for the year ended December 31, 2006. Fill in the consolidated working paper columns to show how each of the items from the separate company reports will appear in the consolidated income statement.
	Dove	Squab	Consolidated
Sales	450,000	200,000
Income from Squab	46,000
Gain on sale of equipment	16,000
Gain on sale of land		5,000
Cost of sales	-211,500	-91,500
Depreciation expense	-45,500	-23,500
Other expenses	-120,000	-34,000
Net income	135,000	56,000