Preparing a consolidated income statement$-$Equity method with noncontrolling interest, AAP and upstream and downstream intercompany inventory profits

A parent company purchased an $80\%$ controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $$460,000$ in excess of the subsidiary's Stockholders' Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $$276,000$ and to an unrecorded patent valued at $$184,000.$ The building asset is being depreciated over a $16-$year period and the patent is being amortized over an $8-$year period, both on the straight$-$line basis with no salvage value. During the current year, the parent and subsidiary reported a total of $$690,000$ of intercompany sales. At the beginning of the current year, there were $$48,300$ of upstream intercompany profits in the parent's inventory. At the end of the current year, there were $$74,750$ of downstream intercompany profits in the subsidiary's inventory. During the current year, the subsidiary declared and paid $$103,500$ of dividends. The parent company uses the equity method of preconsolidation investment bookkeeping. Each company reports the following income statement for the current year:

$\backslash$table$[[$Parent$,$Subsidiary,$],[$Income statement:,,$],[$Sales$,$$$10,350,000,$$$1,495,000$