The following items pertain to a parent company and its 60%-owned subsidiary at year end. There are no cross-guarantees of debt between the parent and subsidiary. Parent Subsidiary Current assets $500,000 $1,000,000 Noncurrent assets (excluding subsidiary investment) 5,000,000 2,000,000 Current liabilities 750,000 250.000 Noncurrent liabilities 2,000,000 750.000 Revenues 1,700,000 1,500,000 Expenses 1,600,000 900.000 Dividends 100,000 600.000 Required: Explain and illustrate how consolidated reporting using the previous data can be misleading