Up and its 80 percentowned subsidiary (Down) reported the following figures for the year ending December 31, 2018. Down paid dividends of $54,000 during this period.

	Up				Down
Sales	$	(1,080,000	)		$	(540,000	)
Cost of goods sold		540,000				252,800
Operating expenses		313,200				108,000
Dividend income		(43,200	)			0
Net income	$	(270,000	)		$	(179,200	)

In 2017, intra-entity gross profits of $54,000 on upstream transfers of $162,000 were deferred into 2018. In 2018, intra-entity gross profits of $71,200 on upstream transfers of $196,400 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.