Stamford Hornets Players Association and Mr. Mogul, the CEO and majority owner of Stamford Hornets Soccer, Inc., ask your help in resolving a salary dispute. Mr. Mogul presents the following income statement to the players representatives.

STAMFORD HORNETS SOCCER, INC. Income Statement
Ticket revenues		$ 3,500,000
Stadium rent expense	$2,500,000
Ticket and promotion expense	110,000
Player salaries	700,000
Staff salaries and miscellaneous	265,000	3,575,000
Net income (loss)		$ (75,000)

The players contend that their salaries are below market and a raise is warranted. Mr. Mogul argues that the Stamford Hornets really lose money and, until ticket revenues increase, a salary hike is out of the question.

As a result of your inquiry, you discover that Stamford Hornets Soccer Inc. owns 85 percent of the voting stock in Hornets Nest Stadium, Inc. This venue is specifically designed for soccer and is where the Hornets play their entire home game schedule. However, Mr. Mogul does not wish to consider the profits of Hornets Nest Stadium in the negotiations with the players. He claims, The stadium is really a separate business entity that was purchased separately from the team and therefore does not concern the players. On top of that, we allocate all the ticket revenues to the teams income statement."

The Hornets Nest Stadium income statement appears as follows:

HORNETS NEST STADIUM, INC. Income Statement
Stadium rent revenue	$2,500,000
Concession revenue	875,000
Parking revenue	95,000	$3,470,000
Cost of goods sold	270,000
Depreciation expense	90,000
Grounds maintenance expense	410,000
Staff salaries and miscellaneous	200,000	970,000
Net income (loss)		$2,500,000

1. Prepare a consolidated income statement in good form. Title the income statement Stamford Hornets Team and Stadium and date it December 31, 20XX.