Pan Corporation owns an 80 percent interest in the common stock of She Corporation, acquired several years ago at book value. Pan regularly sells merchandise to She. Information relevant to the intercompany sales and profits of Pan and She for 2011, 2012, and 2013 is as follows:

REQUIRED: Prepare a schedule showing consolidated net income for eachyear.

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2013 2011 2012 Sales to She Unrealized profit in She's inventory at December 31 She's separate income Pan's separate income (does not include investment income) $300,000 $360,000 $600.000 90,000 1.500.000 60,000 1,425,000 1.650,000 1,200,000 1,050,000 900,000