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Up and its 80 percent-owned subsidiary (Down) reported the following figures for the year ending December 31, 2018. Down paid dividends of $39,000 during this period Up $(780,000) 390,000 226,200 (31,200) Down Sales Cost of goods sold $(390,00e) 182,308 78,000 operating expme31,209, 780) Dividend income Net income $ (195,000) $(129,700) In 2017, intra-entity gross profits of $39,000 on upstream transfers of $117,000 were deferred into 2018. In 2018, intra-entity gross profits of $51,700 on upstream transfers of $142,400 were deferred into 2019 a. What amounts appear for each line in a consolidated income statement? b. What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 30 percent. a. Sales Cost of goods sold Operating expenses Dividend income Consolidated net income Noncontrolling interest in consolidated net income Controlling interest in consolidated net income b. Income tax expense

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10 Amount 011 sales 0 .27600 $442600 304200 vip cantralling Intnest in consalidated Net Income cost of 9oods Sold Operating expenses Dividend income consolidated net income 3220. 800 23.400 253400. s O 280,800 zncome tax expenses lancantralling intest in conld 二. Taxes .- s.000-31200)·メー3 or 53800 x 30z Intrestin consol met income S L919D bInome tar expense $ 802u0 $8 8os Asset. CSS1300-53900 working a) 180 tas ек penses csson-380) $ 84 240 00) + 442,600 i) operting expens es $20 4 2.00 Dividend-income. )consoli dos e Net 1ncome 2$ 280.800 in consolidladed nlet lnom 係129700 ±39000-51300s 20 r- S 23400

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