Peggy Company owns $75\%$ of Sally Inc, and uses the cost method to account for its investment. The following data were taken from the Year $4$ income statements of the two companies:

Revenues

Miscellancous expenses

Depreciation expense

Income tax expense

Total expenses

Profit

$$580\mathrm{.}000$

$110\mathrm{.}000$

$162,000$

$123,000$

$395\mathrm{.}000$

$$185\mathrm{.}000$

Sally

$$270\mathrm{.}000$

$85\mathrm{.}000$

$97\mathrm{.}000$

$35\mathrm{.}000$

$217\mathrm{.}000$

$ $53\mathrm{.}000$

$418$

CHAPTER $7($A$)$ Intercompany Profits in Depreciable Assets $($B$)$ Intercompany Bondholdings

On January $1.$ Year $2,$ Sally sold equipment to Peggy at a gain of $$15,000.$ Peggy has been depreciating this equipment over a five$-$year period. Sally did not pay any dividends in Year $4.$ Use income tax allocation at a rate of $40\%.$

Required

$($a$)$ Calculate consolidated profit attributable to Peggy's shareholders for Year $4.$

$($b$)$ Prepare a consolidated income statement for Year $4.$

$($c$)$ Calculate the deferred income tax asset that would appear on the Year $4$ consolidated statement of financial position