PROVIDE THE CORRECT AMOUNT FOR EACH ACCOUNT!

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 $7,500,000 $1,125,000 Cost of goods sold (5,250,000) (675,000) Gross profit 2,250,000 450,000 Income (loss) from subsidiary 126,000 Operating expenses (1,425,000) (292,500) Net income $951,000 $157,500 0 a. Compute the Income (loss) from subsidiary of $126,000 reported by the parent company. Net income of subsidiary $ Net income 157,500 80 % 126,000 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 $ 7,500,000 Cost of goods sold (5,250,000) Gross profit 2,250,000 Income (loss) from subsidiary 157,500 Operating expenses 1,425,000 Net income 1,108,500 Net income attributable to parent 1,077,000 Net income attributable to noncontrolling interests $ 31,500