The ones marked 0 are the ones I need help on. btw for part a. "parents pre-consolidation net income" is 448,000 not 488,000. I realized after I posted it.

Question 6 Partially correct Mark 3.75 out of 10.00 ? Flag question Preparing a consolidated income statementCost method with noncontrolling interest, MP and upstream intercompany depreciable asset profits A parent company purchased an 80% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $230,000 in excess of the subsidiary's Stockholders' Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $150,000 and to an unrecorded patent valued at $80,000. The building asset is being depreciated over a 10year period and the patent is being amortized over an 8 year period, both on the straightline basis with no salvage value. During a previous year, the subsidiary sold to the parent company a piece of depreciable property. The unconfirmed upstream gain on this intercompany transaction was $90,000 at the beginning of the current year. The upstream gain confirmed each year is $18,000. During the current year, the subsidiary declared and paid $60,000 of dividends. The parent company uses the cost method of proconsolidation investment bookkeeping. Each company reports the following income statement for the current year: Income statement: Sales $9,000. 000 $1 .200. 000 Cost of goods sold (6,200,000) [??0.000) Gross prot 2.800.000 430.000 Income {loss} from subsidiary 48.000 - Operating expenses {2.400.000} {330.000} Net income $448000 $100000 a. Starting with the parent's currentyear preconsolidation net income of $448,000. compute the amount of current-year net income attributable to the parent that will be reported in the consolidated nancial statements. Do not use negative signs with your answers below. Reconciliation of Cost to Equity Method Parent's preconsolidation net income $ 488.000 Dividend Income 48,000 P% x Net income of subsidiary 80,000 P% x AAP amortization 20,000 P% of Upstream profit 0 Net income attributable to controlling interest $ 0 b. Prepare the consolidated income statement for the current year. Do not use negative signs with your answers below. Consolidated Income Statement Sales $ Cost ofgoods sold Gross prot Operating expenses Net income Net income attributable to noncontrolling interests 00 oaooooo '5'! Net income attributable to the parent You have correctly selected 6. Partially correct Marks for this submission: 335.0 0.00