On January 1, Year 1, Entity A acquired 60% of Entity B's voting interests for $100,000. The carrying amount of Entity B's assets and liabilities on that date equals their fair values. The noncontrolling interest (NCI) is measured at its fair value of $50,000. Entity A and Entity B use the same accounting principles, and no consolidating adjustments need to be made for intraentity transactions, etc., except as described below.

The trial balances on December 31, Year 1, of Entity A and Entity B before consolidation are presented in the attached excel document

Additional information:

• In its separate financial statements, Entity A accounts for its investment in the subsidiary (Entity B) according to the cost model. Thus, dividends from the subsidiary are recognized as income.
• During Year 1, Entity B distributed a cash dividend of $40,000.
• On December 31, Year 1, Entity A sold on credit an inventory item with a cost of $20,000 to Entity B for $28,000. This item is in Entity B's inventory at year end.

Note: To simplify the simulation, items of other comprehensive income are not included.

Complete Entity A's year-end consolidated income statement. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values with commas as appropriate. Do not include $ signs or decimals. If no entry is necessary, enter a zero "0".

Entity B 124,000 36,000 63,000 Entity A 69,000 29,000 34,000 24,000 50,000 100,000 (52,000) (62,000) 106,000 Account Cash Trade receivables Inventories Current investments PPE (net) Investment in Entity B Trade payables Liability for employee benefits Noncurrent loans payable Common stock Additional paid-in capital Retained earnings January 1, Year 1 Net sales Cost of sales General and administrative expenses Interest expense Dividend income received from Entity B Income tax expense Dividends declared and paid (29,000) (43,000) 190,000) (33,000) (37,000) (55,000) (150,000) 50,000 8,000 4,000 (40,000) (21,000) (78,000) (120,000) 61,000 17,000 6,000 (24,000) 6,000 7,000 40,000 Consolidated Income Statement Item Balance December 31, Year 1 Net sales Cost of sales Dividend income Net income Net income attributable to the NCI Net income attributable to the parent