The following information relates to Panorama Corporation and its 70 percent-owned

subsidiary, Scan, for the year 2022 is as follows (in thousands):

Panorama Scan

Sales $2,000 $ 800

Income from Scan 98

Cost of sales (1,200) (400)

Depreciation expense (100) (80)

Other expenses (398) (180)

Required:

b. Prepare a consolidated income statement for Panorama Corporation and Subsidiary for 2022. (Working paper not required) Assuming that Panorama acquired its 70 percent interest in Scan on January 1, 2021, for $280,000. $60,000 was allocated to a reduction of overvalued equipment with a five-year remaining useful life and the remainder was allocated to goodwill. Scans book value was $320,000. There were no intercompany transactions during 2021 and 2022.