PART C

2) At December 31, 2020, The Comparative income statements of PortlandCorporation and Sand Corporation shows the following (in thousands):

	Portland	Sand
Sales	$6,400	$2,600
Income from Sand	768
Total revenue	7,168	2,600
Less: Cost of goods sold	3,600	800
Operating expenses	1,600	800

Additional information

1. PortlandCorporation acquired 80 percent of Sand for $3,200,000 on January 1, 2018, when Sands stockholders equity at book value was $2,800,000.

2. The excess of the cost of Portlands investment in Sand over book value acquired was allocated

$120,000 to undervalued inventories that were sold in 2018, $160,000 to undervalued equipment with a four-year remaining useful life, and the remainder to goodwill.

Required:

Prepare a consolidated income statement for Portland Corporation and Subsidiary for the year

ended December 31, 2020.