Up and its 80 percentowned subsidiary (Down) reported the following figures for the year ending December 31, 2018. Down paid dividends of $43,000 during this period.

Up				Down
Sales	$	(860,000	)		$	(430,000	)
Cost of goods sold		430,000				201,100
Operating expenses		249,400				86,000
Dividend income		(34,400	)			0
Net income	$	(215,000	)		$	(142,900	)

in 2017, intra-entity gross profits of $43,000 on upstream transfers of $129,000 were deferred into 2018. In 2018, intra-entity gross profits of $56,900 on upstream transfers of $156,800 were deferred into 2019.

1. What amounts appear for each line in a consolidated income statement?

2. What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 30 percent.

1. What amounts appear for each line in a consolidated income statement?

2. What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 30 percent.

1. What amounts appear for each line in a consolidated income statement?

2. What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 30 percent.