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 $25,000,000 $3,750,000 Cost of goods sold 17,500,000 2,250,000 Gross profit 7,500,000 1,500,000 Income (loss) from subsidiary 420,000 0 Operating expenses 4,750,000 975,000 $3,170,000 $525,000 Net income a. Compute the Income (loss) from subsidiary of $420,000 reported by the parent company. : $ $ 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 + 0 $