Please calculate part b$,$ specifically the Cost of Goods Sold. Please solve by $3/10$ at $11$:$59$ am ET$.$

Consolidated Income Statement, Intercompany Merchandise Transactions

Condensed income statements for Pon and its $80$ percent$-$owned subsidiary, Star, appear below.

Intercompany sales are $$1,500,000.$ Unconfirmed intercompany profit in Pon's beginning inventory is $$100,000,$ and unconfirmed intercompany profit

in Pon's ending inventory is $$120,000.$ Unconfirmed intercompany profit in Star's beginning inventory is $$90,000,$ and unconfirmed intercompany profit

in Star's ending inventory is $$50,000.$ At the date of combination four years ago, previously unrecorded identifiable intangibles $(8-$year life, straight$-$line$)$

of $$800,000$ were recognized. Because the acquisition cost included a control premium, total goodwill recognized at the date of acquisition is shared

with the noncontrolling interest in a $90$:$10$ ratio. This year's goodwill impairment loss is $$250,000.$

Required

a$.$ Prepare a schedule to compute Pon's equity in net income and the noncontrolling interest in net income.

Use negative signs with answers that reduce net income amounts.

Enter answers using all zeros $($do not abbreviate to millions or thousands$).$

b$.$ Prepare a condensed consolidated income statement for Pon and Star.

Do not use negative signs with any of your answers below.

Enter answers using all zeros $($do not abbreviate to millions or thousands$).$