Preparing a consolidated income statement-Equity method with noncontrolling interest, AAP and upstream intercompany depreciable asset 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 $690,000 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 $450,000 and to an unrecorded Customer List valued at $240,000. The building asset is being depreciated over a 12-year period and the Customer List is being amortized over a 5-year period, both onl the straight-line basis with no salvage value. During a previous year, the subsidiary sold to the parent company a piece of depreciable property. The unconfirmed upstream gain on this intercompany transaction was $180,000 at the beginning of the current year. The upstream gain confirmed each year is $45,000. During the current year, the subsidiary declared and paid $270,000 of dividends. The parent company uses the equity method of pre-consolidation investment bookkeeping. Each company reports the following income statement for the current year: Parent Subsidiary Income statement Sales $12,000,000 $3,600,000 Cost of goods sold L400.000 (2.160.000) Grass profit 3,600,000 1,440000 Income CO from subsidary 370900