Consolidated Income Statement, Intercompany Transactions Condensed income statements for Pon and its 80 percent-owned subsidiary, Star, appear below. Condensed Income Statements Sales Equity in net income of Star Cost of goods sold Other expenses Net income Star Pon $9,000,000 $4,000,000 439,000 (6,000,000) (2,500,000) (2,000,000) (600,000) $1,439,000 $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 a. Prepare a schedule to compute Pon's equity in net income and the noncontrolling interest in net income. Use negative signs with answers that reduce net income amounts. Enter answers using all zeros (do not abbreviate to millions or thousands). Equity Noncontrolling Total in NI Interest in NI Star's reported net income $ 0 * $ 0 * $ 0 % Amortization of identifiable intangibles 0 % 0 % 0 % Goodwill impairment loss 0 % 0% 0 % Confirmed profit in BI - upstream 0% 0 % 0 % Confirmed profit in BI - downstream 0 % 0 % 0 Unconfirmed profit in El - upstream 0 % 0 % 0 % Unconfirmed profit in El - downstream 0 % 0 % 0 $ 0 % $ 0 * $ 0 % b. Prepare a condensed consolidated income statement for Pon and Star. Do not use negative signs with any of your answers below. Enter answers using all zeros (do not abbreviate to millions or thousands). Pon and Star Consolidated Income Statement Sales Cost of goods sold Other expenses Consolidated net income Less consolidated NI attributed to NCI $ 11,520,000 (8,500,000) x (2,000,000) x Consolidated net income attributed to controlling interest $ (100,000) x (250,000) x 700,000 x