differencenotesItemcase$20,00060\%$ sold $2015,30\%$ sold $2016$Inventoryunderstated$30,0006$ years remaining lifeEquipmentOverstated understated$40,00010\%$ sold $2015,10\%$ sold $2016$LandNote receivableOverstated$10,0002$ years to maturityGoodwillunderstated$200,000$No impairment $2015,10,000$ impairment $2016$itemSitemNet income $2015400,000100,000$Net Sales $20161,500,000600,000$Net income $2016400,000100,000$Cost of goods sold $2016700,000300,000$Dividends $2015($all cash$)100,00050,000$Dividends $2016(70\%$ cash$)100,00050,000$Q$4$: The following transactions occurred between the parent $($P$)$ and its subsidiary $($S$)$ during $2016,$ the acquisition occurred $1-1-2015$ when the BV of S was $500,000$ consist$($is$)$ of$350,000$ common stocks, $50,000$ additional paid in capital, and $100,000$ retained earnings and the differences between the BV and FV as the following :The following relate to $2015$ and $2016$ for both P and S$2016$The intercompany transactions $2015$ & $2016$P sold inventory costing $20,000$ to S for $25,000,$from those inventory S sold to external party $50\%$ of them.S sold inventory costing $30,000$ to P for $40,000,$ from those inventory P sold to external party $50\%$ of them.P sold inventory costing $20,000$ to S for $25,000,$from those inventory S sold to external party $60\%$ of them.S sold inventory costing $30,000$ to P for $40,000,$ from those inventory P sold to external party $60\%$ of them.In addition to the sales above, P sold to external party $30\%$ of inventory purchased from Sin $2015.$In addition to the sales above, S sold to external party $20\%$ of inventory purchased from P in $2015.$A$-$Answer the following questions $(14$ points$)$:QuestionanswerAdjusted net income of S $2016$Implied value of'SNone controlling interest share $2016$Controlling interest share $2016$Consolidated net sales $2016$Consolidated cost of goods sold $2016$Consolidated dividends payable $2016$Consolidated NCI $2016$Upstream unrealized gross profit become realized $2016$Downstream unrealized gross profit become realized $2016$Upstream realized gross profit become unrealized $2016$Downstream realized gross profit become unrealized $2016$Upstream unrealized gross profit still unrealized $2016$Downstream unrealized gross profit still unrealized $2016$