Comparative income statements for Pim Corporation and its 100 percent-owned subsidiary, Sad Corporation, for the year ended December 31, 2019, are summarized as follows:

Pim purchased its interest in Sad at fair value equal to book value on January 1, 2011. On January 1, 2012, Pim sold $500,000 par of 10 percent, 10-year bonds to the public at par, and on January 2, 2019, Sad purchased $200,000 par of the bonds at 97. The companies use straight-line amortization. There are no other intercompany transactions between the affiliates.REQUIRED: Prepare a consolidated income statement for Pim Corporation and Subsidiary for the year ended December 31,2019.

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Pim Sad $1,000,000 226,000 Sales Income from Sad Bond interest income (includes discount amortization) Cost of sales Operating expenses Bond interest expense Net income $500,000 22.000 (670,000) (150,000) (50.000) $ 356,000 (100,000) $222.000