Preparing a consolidated income statement-Equity method with noncontrolling interest, AAP and upstream intercompany depreciable asset profits A parent company purchased an 80% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $345,000 in excess of the subsidiary's Stockholders' Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $225,000 and to an unrecorded Customer List valued at $120,000. The building asset is being depreciated over a 12-year period and the Customer List is being amortized over a 5-year period, both on the straight-line basis with no salvage value. During a previous year, the subsidiary sold to the parent company a piece of depreciable property. The unconfirmed upstream gain on this intercompany transaction was $90,000 at the beginning of the current year. The upstream gain confirmed each year is $22,500. During the current year, the subsidiary declared and paid $135,000 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: Income statement: Sales Cost of goods sold Gross profit Income (loss) from subsidiary Operating expenses Net income Parent Subsidiary $12,000,000 $1,800,000 (8,400,000) (1,080,000) 3,600,000 720,000 185,400 0 (2,280,000) (468,000) $1,505,400 $252,000 a. Compute the Income (loss) from subsidiary of $185,400 reported by the parent company in its pre- consolidation income statement. Do not use negative signs with your answers below. Subsidiary's net income AAP Confirmed upstream gain $ Adjusted subsidiary income $ P % of interest X 96 Income (loss) from subsidiary $