CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 6 Not yet answered Points out of 15.00 P Flog question Preparing a consolidated income statement-Equity method with noncontrolling interest and AAP A parent company purchased a 60% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $875,000 in excess of the subsidiary's Stockholders Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $525,000 and to an unrecorded patent valued at S350,000. The building asset is being depreciated over a 20-year period and the patent is being amortized over a 10-year period, both on the straight-line basis with no salvage value. During the current year, the subsidiary declared and paid $140,000 of dividends. The parent company uses the equity method of pre-consolidation investment bookkeeping. Each company reports the following income statement for the current year: Parent Subsidiary Income statement: Sales Cost of goods sold Gross profit Income (os5) from subsidiory 139,650 Operating expenses Net income $6,000,000 $2,100,000 (4,200,000) (1,260,000) 1,300,000 840,000 (1,140,000) (546,000) 5799,650 $294,000 a. Compute the Income (loss) from subsidiary of $139.650 reported by the parent company in its preconsolidation income statement. Do not use negative signs with your answers below. Subsidlary's net income AAP Adjusted subsidiary income S PH of interest Income (loss) from subsidiary 5