QUESTION 1 Incomplete answer Marked out of 30.00 Flag question Preparing a consolidated income statement-Equity method with noncontrolling interest and AAP A parent company purchased a 60% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $375,000 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 patent valued at $150,000. The building asset is being depreciated over a 20-year period and the patent is being amortized over a 10-year period, both on the straight-line basis with no salvage value. During the current year, the subsidiary declared and paid $60,000 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 Income statement: Sales Cost of goods sold Gross profit Income (loss) from subsidiary Operating expenses $6,000,000 s00,000 (4,200,000) (540,000) 1,800,000 360,000 59,850 (1,140,000) 234,000) $719,850 $126,000 Net income a. Compute the Income (loss) from subsidiary of $59,850 reported by the parent company in its preconsolidation income statement. Do not use negative signs with your answers below Subsidiary's net income S 126,000 AAP Adjusted subsidiary income P % of interest Income (loss) from subsidiary