Arriba and its 80 percentowned subsidiary (Abajo) reported the following figures for the year ending December 31, 2021 (credit balances indicated by parentheses). Abajo paid dividends of $40,000 during this period.

	Arriba				Abajo
Sales	$	(800,000	)		$	(400,000	)
Cost of goods sold		400,000				187,000
Operating expenses		232,000				80,000
Dividend income		(32,000	)			0
Net income	$	(200,000	)		$	(133,000	)

In 2020, intra-entity gross profits of $40,000 on upstream transfers of $120,000 were deferred into 2021. In 2021 intra-entity gross profits of $53,000 on upstream transfers of $146,000 were deferred into 2022.

What amounts appear for each line in a consolidated income statement for the year ending December 31, 2021?

What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 21 percent.