Preparing a consolidated income statement - with noncontrolling interest, but no AAP or intercompany profits A...

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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 Income statement: Sales Cost of goods sold Gross profit Subsidiary $25,000,000 $3,750,000 17,500,000 2,250,000 7,500,000 1,500,000 Income (loss) from subsidiary 420,000 0 Operating expenses Net income 4,750,000 $3,170,000 975,000 $525,000 a. Compute the Income (loss) from subsidiary of $420,000 reported by the parent company. Income (loss) from subsidiary S 0 0 % S 0 b. Prepare the consolidated income statement for the current year. Do not use negative signs with your answers. Consolidated Income Statement Sales S 0 Cost of goods sold 0 Gross profit 0 Income (loss) from subsidiary 0 Operating expenses 0 0 0 $ 0 Please answer all parts of the question. 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 Income statement: Sales Cost of goods sold Gross profit Subsidiary $25,000,000 $3,750,000 17,500,000 2,250,000 7,500,000 1,500,000 Income (loss) from subsidiary 420,000 0 Operating expenses Net income 4,750,000 $3,170,000 975,000 $525,000 a. Compute the Income (loss) from subsidiary of $420,000 reported by the parent company. Income (loss) from subsidiary S 0 0 % S 0 b. Prepare the consolidated income statement for the current year. Do not use negative signs with your answers. Consolidated Income Statement Sales S 0 Cost of goods sold 0 Gross profit 0 Income (loss) from subsidiary 0 Operating expenses 0 0 0 $ 0 Please answer all parts of the question.