Hussain(1)

Manama Co owns 75% of the outstanding common stock of Muscat Co. The book values and fair values of Muscat's assets and liabilities were equal The cost of Manama's investment was equal to 75% of the book value of Muscat's net assets Separate company income statements for Manama and Muscat for the year ended December 31, 2020 are summarized as follows Sales Revenue Investment income from. Muscat Cost of Goods Sold Expenses Net Income Manama Muscat $2,400,000 $800,000 142,000 (1 600,000) (400.000) (450 000) (200.000) $492.000 $200.000 Manama agreed to purchases its inventory from Muscat at a markup of 10% of cost. During 2020, Muscat sold 198,000 of inventory to Manama Manama's beginning and ending inventories for 2020 were $110.000 and $88,000, respectively Half of this merchandise remained in company's inventory at January and December 31, 2020, respectively Required: Prepare a consolidated income statement for Manama Co and Subsidiary for 2020