Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as follows (in thousands):

	2019	2020	2021
Sales	$22,000	$18,500	$19,250
Cost of Sales	10,600	9,900	10,100
Gross Profit	11400	8600	9150
Operating Expense	5,700	5,500	6,000
Net Income	$ 5700	$ 3100	$ 3150

ADDITIONAL INFORMATION

1. Sub was an 80 percent-owned subsidiary of Pub Corporation throughout the 20192021 period. Pubs separate income (excludes income from Sub) was $7,200,000, $6,600,000, and $7,500,000 in 2019, 2020, and 2021, respectively. Pub acquired its interest in Sub at its underlying book value, which was equal to fair value on July 1, 2017.
2. Pub sold inventory items to Sub during 2019 at a gross profit to Pub of $720,000. Half the merchandise remained in Subs inventory at December 31, 2019. Total sales by Pub to Sub in 2019 were $1,800,000. The remaining merchandise was sold by Sub in 2020.
3. Pubs inventory at December 31, 2020, included items acquired from Sub on which Sub made a profit of $410,000. Total sales by Sub to Pub during 2020 were $1,600,000.
4. There were no unrealized profits in the December 31, 2021 inventories of either Sub or Pub.
5. Pub uses the equity method of accounting for its investment in Sub.

REQUIRED

1. Prepare a schedule showing Pubs income from Sub for the years 2019, 2020, and 2021.
2. Compute Pubs net income for the years 2019, 2020, and 2021.
3. Prepare a schedule of consolidated net income for Pub Corporation and Subsidiary for the years 2019, 2020, and 2021, beginning with the separate incomes of the two affiliates and including non-controlling interest computations.
4. By reference to the data in the problem set, discuss the meanings of upstream sales and downstream sales and their relevance in computing parent and consolidated net income.