ll Explain the adjustments the two companies to arrive at the consolid The separate ethoome 20 3) Fixed asset sales by parent and subsidiary and its 90%-owned subsidiary, Link Company, for statements of Dann rCompany ended December 31, 2016, are as follows: - Exercise 7 (L03) Fixed asset sales by Danner Link Company $650,000 280,000 400,000 (190,000 $ 250,000 90,000 70,000 Company Sales Cost of goods sold.. Gross profit (180,000) 20,000 . $ 90,000 20,000 income 18,000 $108,000 20,000 The following additional facts apply: a. On January 1, 2015, Link Company purchased a building, with a book value of $100,000 and an estimated 20-year life, from Danner Company for $150,000. The building was being depreciated on a straight-line basis with no salvage value b. On January 1, 2016, Link Company sold a machine with a cost of $40,000 to Danner Company for $60,000. The machine had an expected life of five years and is being deprecated on a straight-line basis with no salvage value. Link Company is a dealer for the machine. Prepare a worksheet that shows income statements of Danner and Link with a column nations,. Be sure to include the distribution of income to the controlling and non-contro for elimi- interest Exercise 8 (LO 2, 3) Merchdi