Up and its 80 percentowned subsidiary (Down) reported the following figures for the year ending December 31, 2018. Down paid dividends of $33,000 during this period.

	Up				Down
Sales	$	(660,000	)		$	(330,000	)
Cost of goods sold		330,000				154,100
Operating expenses		191,400				66,000
Dividend income		(26,400	)			0
Net income	$	(165,000	)		$	(109,900	)

In 2017, intra-entity gross profits of $33,000 on upstream transfers of $99,000 were deferred into 2018. In 2018, intra-entity gross profits of $43,900 on upstream transfers of $120,800 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.