You were given the following information for the Unadjusted partial Income Statements for

Parent Inc. and Sub Inc. for December $31,2023$

Also for simplicity, assume no other expenses other than listed above.

Question $1$

Assume Parent owns $100\%$ of Sub. You were also advised that:

Consolidated goodwill was $$30,000.$ At the end of $2023,$ there was a $15\%$ goodwill

impairment.

On the date of acquisition, the fair value of Sub's inventory was $$5,000$ less than book value.

All of this inventory was sold during $2023.$

Required:

Calculate the adjusted Consolidated Net income before Tax.You were given the following information for the Unadjusted partial Income Statements for Parent Inc. and Sub Inc. for December $31,2023$

Parent Inc.

Sub Inc.

Sales Revenue

$$1,000,000$

$$500,000$

Cost of Goods Sold

$$600,000$

$$300,000$

Depreciation Expense

$$40,000$

$$20,000$

Also for simplicity, assume no other expenses other than listed above.

Flag question: Question $1$

Question $15$ pts

Assume Parent owns $100\%$ of Sub. You were also advised that:

Consolidated goodwill was $$30,000.$ At the end of $2023,$ there was a $15\%$ goodwill impairment.

On the date of acquisition, the fair value of Sub$$s inventory was $$5,000$ less than book value. All of this inventory was sold during $2023.$

Required:

Calculate the adjusted Consolidated Net income before Tax.