Question 4 (7 points): Pelga Company routinely receives goods from its 80%-owned subsidiary, Swede Corporation. In 2011, Swede sold merchandise that cost $80,000 to Pelga for $100,000. Half of this merchandise remained in Pelga's December 31, 2011 inventory. This inventory was sold in 2012. During 2012, Swede sold merchandise that cost $160,000 to Pelga for $240,000. An amount of $63,000 of the 2012 merchandise inventory remained in Pelga's December 31, 2012 inventory. Selected income statement information for the two affiliates for the year 2012 was as follows: Pelga Swede Sales Revenue $500,000 $400,000 Cost of Goods Sold 400,000 320,000 Gross profit $100,000 $80,000 Operating expenses 30,000 40,000 Separate Income $70,000 $40,000 1) What is the income from Swede that Pelga would report in its income statement 2012? 2) Prepare the consolidated income statement for 2012