no AAP G..., 2. Preparing a consolidated Income statement-With noncontrolling interest, but no AAP intercompany profits A parent company purchased an 705.interest in its subsidiary several years ago with no AAP chased at book value). Each reports the following income statement for the current year: Parent Subsidiary Income statement S .. **** Cost of goods sold.. Gross profit Income fossfrom subsidiary Operating expenses... Net income.......... $900,000 (540.000 350.000 $6,000,000 (4.200.000 1,800,000 88.200 (1.140.000 $ 748,200 234.000 $126.000 4. Compute the Equity Income of $88,200 reported by the parent company. b. Prepare the consolidated income statement for the current year