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 $16,800. 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 Year 6

Miscellaneous revenues $ 770,000 $ 845,000

Gain on sale of assets 11,200 44,800

Rental revenue 4,200 16,800

785,400 906,600

Miscellaneous expenses 403,000 493,140

Rental expense 55,500 65,500

Depreciation expense 79,000 83,500

Income tax expense 83,000 96,500

Non-controlling interest 34,500 5,640

655,000 744,280

Net income $ 130,400 $ 162,320

AS 6 - ACCG42000D Consolidatic x Question 1 - AS 6 - Connect X C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252... ABP G O Apps The Official Home. YouTube Speedtest.net by O... W APA Citation Forma... No Game No Life E. O Payworks Applicatimichxxi's Favorite. https://www.powto.. AccessSheridan Other bookmarks AS 6 i Saved Help Save & Exit Submit Check my work ACILOL I EVCINE 785, 400 906, 600 Miscellaneous expenses 000 'Eet 493, 140 Rental expense 55, 500 65, 500 Depreciation expense 79, 090 83, 500 Income tax expense 83, 000 96, 500 10 Non-controlling interest 34, 500 5, 640 points 655, 000 744, 280 Net income 130, 400 162, 320 01:17:58 Skipped 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.) eBook Parent Company Print Corrected Consolidated Income Statements Years 5 and 6 References Year 5 Year 6 Miscellaneous revenues $ $ Miscellaneous expense Rent expense Depreciation expense Income tax expense Consolidated net income $ $ Attributable to: Shareholders of Parent $ $ NCI $ $ Mc Graw 1 of 2 Hill w 9 PO 10:11 PM Type here to search ENG 2021-03-08AS 6 - ACCG42000D Consolidatic x Question 1 - AS 6 - Connect X C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252... ABP G O Apps The Official Home. YouTube Speedtest.net by O... W APA Citation Forma... No Game No Life E... O Payworks Applicatil Michxxi's Favorite... https://www.powto.. AccessSheridan Other bookmarks AS 6 i Saved Help Save & Exit Submit Check my work 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: 10 points . 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 $16,800. This was the only intercompany rent 01:20:01 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 Skipped subsidiary to the parent. . Both gains were taxed at a rate of 40%. eBook CONSOLIDATED INCOME STATEMENTS Year 5 Year 6 Print Miscellaneous revenues $ 770,000 $ 845, 000 References Gain on sale of assets 11, 200 44, 800 Rental revenue 4, 200 16, 800 785, 400 906, 600 Miscellaneous expenses 000'Eet 493, 140 Rental expense 55, 500 65, 500 Depreciation expense 79, 000 83, 500 Income tax expense 83,000 96, 500 Non-controlling interest 34, 500 5, 640 655, 000 744, 280 Net income 130, 400 162, 320 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.) Mc Graw Hill Type here to search w 9 O 10:09 PM ENG 2021-03-08