Preparing a consolidated income statement-Equity method with noncontrolling interest, AAP and upstream and downstream intercompany inventory profits Aparent company purchased an son controlling interest in its subsidiary several years ago. The gate fair value of the controlling and noncontrolling interest was $360,000 in excess of the Subsidiarys Stockholders' Equity on the acquisition date. This excess was assigned to a bulding that was estimated to be undervalued by $216,000 and to an unrecorded patent valued at 114000 The building assets being deprecated over a 16 year period and the patent is being amortized over an 8-year period, both on the straight line basis with no salvage value. During the Current year, the parent and subsidury reported a total of 55.40.000 of intercompany sales. At the beginning of the current year, there were $37,800 of upstream intercompany profits in the parents inventory At the end of the current year, there were 558.500 of downstream intercompany profits in the subsidiary's inventory. During the current year, the subsidary declared and paid 581,000 of dividends. The parent company uses the equity method of pre-consolidation investment bookkeeping. Each company reports the following income statement for the current year Parent Subsidiary 1.200,000 $1,170.000 Contof goods sold SAB 540000 Gross pront 006 somy Open 2.16000 .000 reported by the parent company in its preo Compute the income to from subday of $133,7 Do not use with you awer bow Sury . . Uw Musly come a. Compute the Income (loss) from subsidiary of $133,740 reported by the parent company in its preconsolidation income statement, Do not use negative signs with your answers below. Subsidiary's net income $ 234,000 AAP 31,500 Upstream sales 37,800 Adjusted subsidiary income $ 303,300 X P of interest 80 % 242,640 X Downstream sales 58 500 Income (loss) from subsidiary S 184,140 x b. Prepare the consolidated income statement for the current year. Do not use negative signs with your answers below. Consolidated Income Statement Sales $ 9,450,000 X Cost of goods sold 5,940,000 x Gross profit 3.510,000 X Operating expenses 2,587.500 Net income 922.500 X Net income attributable to noncontrolling interests 14,652 X Net Income attributable to the parent 907 348 x Check