Question 2 4 points Save Answer Manama Co owns 75% of the outstanding common stock of Muscat Co. The book values and fair values of Muscat's assets and liabilities were equal. The cost of Manama's investment was equal to 75% of the book value of Muscat's net assets. Separate company income statements for Manama and Muscat for the year ended December 31, 2020 are summarized as follows: Sales Revenue Investment income from Muscat Cost of Goods Sold Expenses Net Income Manama Muscat $2,400,000 $800,000 142,000 (1,600,000) (400,000) (450,000) (200,000) $492,000 $200,000 Manama agreed to purchases its inventory from Muscat at a markup of 10% of cost. During 2020, Muscat sold 198,000 of inventory to Manama. Manama's beginning and ending inventories for 2020 were $110,000 and $88,000, respectively. Half of this merchandise remained in company's inventory at January and December 31, 2020, respectively. Required: Prepare a consolidated income statement for Manama Co and Subsidiary for 2020. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I US Paragraph Arial 10pt V iii > > T 26 T o > E