Pastern Industries has an 80% ownership stake in Sascon Incorporated. At the time of purchase, the book value of Sascons assets and liabilities were equal to the fair value. The cost of the 80% investment was equal to 80% of the book value of Sascons net assets. At the end of 2014, they issued the following consolidated income statement:

Sales $930,000

Cost of Sales ($470,000)

Operating expense ($202,000)

Noncontrolling Interest Share ($23,000)

Controlling Interest Share $235,000

Shortly after the statements were issued, Pastern discovered that the 2014 intercompany sales transaction s had not been properly eliminated in consolidation. In fact, Pastern had sold Inventory that cost $80,000 to Sascon for $90,000, and Sascon had sold inventory that cost $50,000 to Pastern for $65,000.Half of the products from both transactions still remained in inventory at December 31, 2014.

Required: Prepare a corrected income statement for Pastern and Subsidiary for 2014.