Preparing a consolidated income statement - with noncontrolling interest, but no AAP or intercompany profits A parent company purchased an 80% interest in its subsidiary several years ago with no AAP (i.e., purchased at book value). Each reports the following income statement for the current year. Parent Subsidiary Income statement: Sales $7,500,000 $1,125,000 Cost of goods sold (5,250,000) (675,000) Gross profit 2,250,000 450,000 Income (loss) from subsidiary 126,000 0 Operating expenses (1,425,000) (292,500) Net income $951,000 $157,500 a. Compute the Income (loss) from subsidiary of $126,000 reported by the parent company. $ Net income Parent's ownership percentage Income (loss) from subsidiary 157,500 80 % $ 126,000 b. Prepare the consolidated income statement for the current year. Do not use negative signs with your answers. Consolidated Income Statement Sales Cost of goods sold Gross profit Income (loss) from subsidiary Operating expenses Net income Net income attributable to noncontrolling interests Net income attributable to parent $ 8,625,000 (5,925,000) 2,700,000 0 (1,717,500) 982,500 31,500 951,000 Check You have correctly selected 13. Partially correct Marks for this submission: 13.81/17.00