Problem 7-2 LO1 Peggy Company owns 75% of Sally Inc. and uses the cost method to account for its investment. The following data were taken from the Year 4 income statements of the two companies: Peggy Sally Revenues $580,000 $270,000 Miscellaneous expenses 110,000 85,000 Depreciation expense 162,000 97,000 Income tax expense 123,000 35,000 Total expenses 395,000 217,000 Profit $185,000 $ 53,000 On January 1, Year 2, Sally sold equipment to Peggy at a gain of $15,000. Peggy has been depreciating this equipment over a five-year period. Sally did not pay any dividends in Year 4. Use income tax allocation at a rate of 40%. Required (a) Calculate consolidated profit attributable to Peggy's shareholders for Year 4. (b) Prepare a consolidated income statement for Year 4. (C) Calculate the deferred income tax asset that would appear on the Year 4 consolidated statement of financial position