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 $15,000,000 $2,250,000 Cost of goods sold 10,500,000 1,350,000 Gross profit 4,500,000 900,000 Income (loss) from subsidiary 252,000 Operating expenses 2,850,000 585,000 Net income $1,902,000 $315,000 a. Compute the Income (loss) from subsidiary of $252,000 reported by the parent company. $ 0 96 Income (loss) from subsidiary $ 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 $ $