Preparing a consolidated income statement - with noncontrolling interest, but AAP or intercompany profits

A parent company purchased an 70% 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, as shown in part b. below.

b. Prepare the consolidated income statement for the current year.

Elimination Entries

Parent Subsidiary Dr. Cr. Consolidated

Income statement:

Sales $6,000,000 $900,000

Cost of goods sold (4,200,000) (540,000)

Gross profit 1,800,000 360,000

Income (loss) from subsidiary 88,2000 0

Operating expenses (1,140,000) (234,000)

Net income $748,200 $126,000

Net income attributable to noncontrolling interests

Net income attributable to parent