P6-1 Consolidated income statement (incomplete equity method, downstream saies) separate income statements of Pea Corporation and its 90 percent-owned subsidiary, Sea Corpora- in, for 2011 are summarized as follows (in thousands): Pea . Sea $600 Sales Income from Sea Gain on equipment Cost of saies Other expenses $1,000 90 40 (600) (400) S 330 100 Net income nvestigation reveals that the effects of certain intercompany transactions are not included in Pea's come from Sea. Information about those intercompany transactions follows es-Sales of inventory items from Pea to Sea are summarized as follows: 2011 2010 $100,000 60,000 $150,000 Intercompany sales Cost of intercompany sales Percentage unsold at year-end 90,000 40% 50% 2. Plant assets-Pea sold equipment with a book value of $60,000 to Sea for $100,000 o 1, 2011. Sea depreciates the equipment on a straight-line basis (ao scrap) over four-year period. REQUIRED 1. Determine the correct amount of Pea's income from Sea for 2011. Prepare a consolidated income statement for Pea Corporation and Subsidiary for 2011