E 5-8 Consolidated income statement with downstream sales The separate incomes (which do not include investment income) of Pic Corporation and Sil Corporation, its 80 percent-owned subsidiary, for 2011 were determined as follows (in thousands): Pic Sil Sales Less: Cost of sales Gross profit Other expenses Separate incomes $800 400 400 200 $200 $200 80 120 60 $ 60 During 2011, Pic sold merchandise that cost $40,000 to Sil for $80,000, and at December 31, 2011, half of these inventory items remained unsold by Sil. REQUIRED: Prepare a consolidated income statement for Pic Corporation and Subsidiary for the year ended December 31, 2011. Calculate controlling and non-controlling share of net income