Up and its 80 percent-owned subsidiary (Down) reported the following figures for the year ending December 31, 2018. Down paid dividends of $30,000 during this period. In 2017, intra-entity gross profits of $30,000 on upstream transfers of $90,000 were deferred into 2018. In 2018, intra-entity gross profits of $40,000 on upstream transfers of $110,000 were deferred into 2019. a. What amounts appear for each line in a consolidated income statement? Explain your computations. b. 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. Up Down Sales... Cost of goods sold Operating expenses Dividend income Net income. $(600,000) 300,000 174,000 (24,000) $(150.000) $(300,000) 140,000 60,000 -O- $(100,000)