Reference no: EM132490468

                                              P                              S

Gross Profit                         $80,000                $60,000

Miscellaneous Expenses         $20,000               $20,000

Depreciation Expense            $30,000               $15,000

Income Tax Expense              $12,000               $10,000

Net Income                          $18,000                $15,000

On January 1, 2019, S sold equipment to P at a profit of $8,000 (before tax). The equipment had a remaining useful life of 25 years on that date. At the end of 2019, S declared and paid a $3,000 dividend. (to provide guidance on an approach to respond to this question, see the template on the next page).

Required:

Question 1. Calculate the 2019 Consolidated Net Income, including the share attributable to the non-controlling interest.

Question 2. Calculate the amount of income tax expense appearing on the 2019 Consolidated Income Statement.