LO2 33. Preparing a consolidated income statementWith noncontrolling interest, but no AAP or intercompany profits A parent company purchased an 80% interest in its subsidiary several years ago with no AAP (i.e., pur- chased at book value). Each reports the following income statement for the current year: Parent Subsidiary ........... ... ......... Income statement: Sales. ...... Cost of goods sold ..... Gross profit. . Income (loss) from subsidiary. ... Operating expenses . . Net income .......... $7,500,000 (5,250,000) 2,250,000 126,000 (1,425,000) $ 951,000 $1,125,000 (675,000) 450,000 0 (292,500) $157,500 a. Compute the Income (loss) from subsidiary of $126,000 reported by the parent company. b. Prepare the consolidated income statement for the current year