Up and its 80 percentowned subsidiary (Down) reported the following figures for the year ending December 31, 2018. Down paid dividends of $46,000 during this period.

	Up				Down
Sales	$	(920,000	)		$	(460,000	)
Cost of goods sold		460,000				215,200
Operating expenses		266,800				92,000
Dividend income		(36,800	)			0
Net income	$	(230,000	)		$	(152,800	)

In 2017, intra-entity gross profits of $46,000 on upstream transfers of $138,000 were deferred into 2018. In 2018, intra-entity gross profits of $60,800 on upstream transfers of $167,600 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.

a. Sales Cost of goods sold Operating expenses Dividend income Consolidated net income Noncontrolling interest in consolidated net income Controlling interest in consolidated net income Income tax expense b