Condensed income statements for PCO and its 75-percent-owned subsidiary, SCO, appear below:

Intercompany sales amounted to $400,000, unconfirmed intercompany profits in ending inventory are $50,000 (downstream) and $40,000 (upstream). The difference between acquisition cost and SCO's book value was allocated to previously unreported identifiable intangibles. The current year write-off of these intangibles is $36,000.
Required
a. Prepare a schedule to compute PCO's equity 'method income accrual and the noncontrolling interest in net income.
b. Prepare a condensed consolidated income statement for PCO and SCO

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(in thousands) Sales. Total revenueR 2,043,000 Other expenses ..x*a*.... PCO sco 43,000 1,200,000 700,000 300,000 1,000,000 Net income443,000 200,000 600,000 1,600,000 ,...1