Question: please only answer if you are knowledgeable in advanced accounting thanks The comparative consolidated income statements of a parent and its 75%-owned subsidiary were prepared
The comparative consolidated income statements of a parent and its 75%-owned subsidiary were prepared incorrectly as at December 31 and are shown in the table given below. The following items were overlooked when the statements were prepared. - The Year 5 gain on sale of assets resulted from the subsidiary selling equipment to the parent on September 30 . The parent immediately leased the equipment back to the subsidiary at an annual rental of $22,800. This was the only intercompany rent transaction that occurred each year. The equipment had a remaining life of five years on the date of the intercompany sale. - The Year 6 gain on sale of assets resulted from the January 1 sale of a building, with a remaining life of seven years, by the subsidiary to the parent. - Both gains were taxed at a rate of 40% Required: Prepare correct consolidated income statements for Years 5 and 6 . (input all values as positive mimbers. Leave no cells blank - be certain to enter zero wherever required. Omit \$ sign in your response.)
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