Parent acquired Sub on January $1,2023.$

You were given the following information for the Unadjusted partial IncomeStatements for Parent Inc. and Sub Inc. for December $31,2023$

Parent Inc.

Sub Inc.

Sales Revenue

$$1,000,000$

$$500,000$

Cost of Goods Sold

$$600,000$

$$300,000$

Depreciation Expense

$$40,000$

$$20,000$

Also for simplicity, assume no other expenses other than listed above. Answer the qAssume Parent owns $100\%$ of Sub. You were also advised that:

Consolidated goodwill as $$40,000.$ At the end of $2023,$ there was a$10\%$ goodwill impairment.

On the date of acquisition, the fair value of Sub$$s inventory was $$5,000$greater than book value.

Required:

Calculate the adjusted Consolidated Net income before Tax. Hint $$consider what adjustments need to be made to consolidated cost of goods sold, and consider goodwill impairment.

As well, be sure to differentiate net income of the Parent and Subseparate