Preparing a consolidated income statement - with noncontrolling interest, but no AAP or intercompany profits A parent company purchased an 80% interest in its subsidiary several years ago with no AAP (i.e., purchased at book value). Each reports the following income statement for the current year.

	Parent	Subsidiary
Income statement:
Sales	$20,000,000	$3,000,000
Cost of goods sold	14,000,000	1,800,000
Gross profit	6,000,000	1,200,000
Income (loss) from subsidiary	336,000	0
Operating expenses	3,800,000)	780,000
Net income	$2,536,000	$420,000

a. Compute theIncome (loss) from subsidiaryof $336,000 reported by the parent company.

AnswerNet incomeNet income attributable to noncontrolling interestsNet income attributable to parentNet income of subsidiaryParent's ownership percentage	Answer
AnswerNet incomeNet income attributable to noncontrolling interestsNet income attributable to parentNet income of subsidiaryParent's ownership percentage	Answer	%
Income (loss) from subsidiary	Answer

b. Prepare the consolidated income statement for the current year.

Do not usenegative signswith your answers.

Consolidated Income Statement
Sales	Answer
Cost of goods sold	Answer
Gross profit	Answer
Income (loss) from subsidiary	Answer
Operating expenses	Answer
AnswerNet incomeNet income attributable to noncontrolling interestsNet income attributable to parentNet income of subsidiary	Answer
AnswerNet incomeNet income attributable to noncontrolling interestsNet income attributable to parentNet income of subsidiary	Answer
AnswerNet incomeNet income attributable to noncontrolling interestsNet income attributable to parentNet income of subsidiary	Answer