Preparing a consolidated income statementEquity method with noncontrolling interest, AAP and upstream intercompany depreciable asset profits A parent company purchased an 80% controliing interest in its subsidiary severai years ago. The aggregate fair value of the controlling and noncontroiling 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 buiiding asset is being depreciated over a 127year period and the Customer List is being amortized over a Seyear period, both on the straighteline 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 conrmed each year is $45,000. During the current year, the subsidiaiy 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 (8,400,000) (Z,i 60,000) Gross profit 3,600,000 1,440,000 Income (loss) from subsidiary 370,800 0 Operating expenses (2,280,000) (936,000) Net income 5 i ,690,800 $504,000 a. Compute the Income (loss) from subsidiary of $370,800 reported by the parent company in its preeconsolidation income statement. Do not use negative signs with your answers beiow. Subsidiary's net income $ 0 AAP 0 Confirmed upstream gain 0 Adjusted subsidiary income $ 0 P % of interest X 0 % Income (Ioss)from subsidiary $ 0 1:). Prepare the consolidated income statement for the current year. b. Prepare the consolidated income statement for the current year. Do not use negative signs with your answers below. Consolidated Income Statement Sales 35 Cost of goods sold Gross profit Operating expenses 0000000 0 0 0 Please answer all parts of the