The comparative consolidated income statements of a parent and its 75%-owned subsidiary were prepared incorrectly as at December 31 and are shown in the table given below. The following items were overlooked when the statements were prepared: The Year 5 gain on sale of assets resulted from the subsidiary selling equipment to the parent on September 30. The parent immediately leased the equipment back to the subsidiary at an annual rental of $12,000. This was the only intercompany rent transaction that occurred each year. The equipment had a remaining life of five years on the date of the intercompany sale. The Year 6 gain on sale of assets resulted from the January 1 sale of a building, with a remaining life of seven years, by the subsidiary to the parent. Both gains were taxed at a rate of 40%. CONSOLIDATED INCOME STATEMENTS Year 5 Miscellaneous revenues $ 750,000 Gain on sale of assets 8,000 Rental revenue 3,000 761,000 Miscellaneous expenses 399,800 Rental expense 52,700 Depreciation expense 75,000 Income tax expense 81,000 Non-controlling interest 32,500 641,000 Net income $ 120,000 Year 6 $ 825,000 42,000 12,000 879,000 492,340 64,300 80,700 94,500 5,160 737,000 $ 142,000 Required: Prepare correct consolidated income statements for Years 5 and 6. (Input all values as positive numbers. Leave no cells blank - be certain to enter zero wherever required. Omit $ sign in your response.) Required: Prepare correct consolidated income statements for Years 5 and 6. (Input all values as positive numbers. Leave no cells blank - be certain to enter zero wherever required. Omit $ sign in your response.) Year 6 $ Parent Company Corrected Consolidated Income Statements Years 5 and 6 Year 5 Miscellaneous revenues $ Miscellaneous expense Rent expense Depreciation expense Income tax expense Consolidated net income $ Attributable to: Shareholders of Parent $ $ NCI $ $