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 $$14,400.$ 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 $ $760,000$ $ $835,000$

Gain on sale of assets $9,60043,400$

Rental revenue $3,60014,400$

$773,200892,800$

Miscellaneous expenses $401,400492,740$

Rental expense $54,10064,900$

Depreciation expense $77,00082,100$

Income tax expense $82,00095,500$

Non$-$controlling interest $33,5005,400$

$648,000740,640$

Net income $ $125,200$ $ $152,160$

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.$)$

Parent Company

Corrected Consolidated Income Statements

Years $5$ and $6$

Year $5$ Year $6$

Miscellaneous revenues $

$760000$

$

$835000$

Miscellaneous expense

$401400$

$492740$

Rent expense

Depreciation expense

Income tax expense

Consolidated net income $

$

Attributable to:

Shareholders of Parent $