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 $50,000 during this period. Arriba Abajo Sales $ (1,000,000 ) $ (500,000 ) Cost of goods sold 500,000 234,000 Operating expenses 290,000 100,000 Dividend income (40,000 ) 0 Net income $ (250,000 ) $ (166,000 ) In 2020, intra-entity gross profits of $50,000 on upstream transfers of $182,000 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.

Arriba and its 80 percent-owned subsidiary (Abajo) reported the following figures for the year ending December 31,2021 (credit balances indicated by parentheses). Abajo paid dividends of $50,000 during this period. In 2020, intra-entity gross profits of $50,000 on upstream transfers of $150,000 were deferred into 2021. In 2021 intra-entity gross profits of $66,000 on upstream transfers of $182,000 were deferred into 2022. a. What amounts appear for each line in a consolidated income statement for the year ending December 31,2021 ? b. 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. (For all requirements, input all amounts as positive values.) Arriba and its 80 percent-owned subsidiary (Abajo) reported the following figures for the year ending December 31,2021 (credit balances indicated by parentheses). Abajo paid dividends of $50,000 during this period. In 2020, intra-entity gross profits of $50,000 on upstream transfers of $150,000 were deferred into 2021. In 2021 intra-entity gross profits of $66,000 on upstream transfers of $182,000 were deferred into 2022. a. What amounts appear for each line in a consolidated income statement for the year ending December 31,2021 ? b. 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. (For all requirements, input all amounts as positive values.)