Noway Manufacturing owns 75 percent of Positive Piston Corporation's stock. During 20X9, Noway and Positive Piston reported sales of $400,000 and $200,000 and expenses of $280,000 and $160,000, respectively.
Required
Compute the amount of total revenue, total expenses, and net income to be reported in the 20X9 consolidated income statement under the following alternative approaches:
a. Proprietary theory.
b. Parent company theory.
c. Entity theory.
d. Current accounting practice.