Condensed Income Statements Pon Star $4,000,000 Sales. Equity in net income of Star Cost of goods sold Other expenses Net income $9,000,000 439,000 (6,000,000) (2,000,000) $1,439,000 (2,500,000) (600,000) $ 900,000 Intercompany sales are $1,500,000. Unconfirmed intercompany profit in Pon's beginning inventory is $100,000, and unconfirmed intercompany profit in Pon's ending inventory is $120,000. Unconfirmed intercompany profit in Star's beginning inventory is $90,000, and unconfirmed intercompany profit in Star's ending inventory is $50,000. At the date of combination four years ago, previously unrecorded identifiable intangibles (8-year life, straight-line) of $800,000 were recognized. Because the acquisition cost included a control premium, total goodwill recognized at the date of acquisition is shared with the noncontrolling interest in a 90:10 ratio. This year's goodwill impairment loss is $250,000. Required Prepare a schedule to compute Pon's equity in net income and the noncontrolling interest in net income. b. Prepare a condensed consolidated income statement for Pon and Star. a. Prepare a schedule to compute Pon's equity in net income and the noncontrolling interest in net income. Noncontrolling Interest In NI Total Equity in NI Star's reported net income Amortization of identifiable intangibles b. Prepare a condensed consolidated Income statement for Pon and Star. Pon and Star Consolidated Income Statement Sales Cost of goods sold Other expenses Consolidated net income Noncontrolling interest in net income Consolidated net Income to controlling interest