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 $19,200. 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 $ 780,000 $ 855,000 Gain on sale of assets 12,800 46,200 Rental revenue 4,800 19,200 797,600 920,400 Miscellaneous expenses 404,600 493,540 Rental expense 56,900 66,100 Depreciation expense 81,000 84,900 Income tax expense 84,000 97,500 Non-controlling interest 35,500 5,880 662,000 747,920 Net income $ 135,600 $ 172,480 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

Miscellaneous expense

Rent expense

Depreciation expense

Income tax expense

Consolidated net income $ $

Attributable to:

Shareholders of Parent $ $

NCI $ $