P Corporation acquired 80% of the outstanding voting stock of S Corporation when the fair values equaled the book values.

On July 1, 2013, P sold land to S for $300,000. The land originally cost P $200,000. S recently resold the land on October 30, 2014 for $350,000.

On October 1, 2014, S Corporation sold equipment to P Corporation for $80,000. S originally paid $100,000 for this equipment and had accumulated depreciation of $40,000 thus far. The equipment has a five-year remaining life.

Required:

A. Complete the consolidated income statement for P Corporation and subsidiary for the year ended December 31, 2014.

	P	S	Elimination Entries Dr. Cr.			Noncontrolling Interest	Consolidated Balances
Sales	1,200,000	600,000
Dividend Income from S	80,000
Gain on Sale of Equipment		20,000
Gain on Sale of Land		50,000
Cost of Sales	(800,000)	(300,000)
Depreciation Expense	(160,000)	(80,000)
Other Expenses	(200,000)	(160,000)
Noncontrolling Interest in Income
Net Income	120,000	130,000