P Corporation Acquired 80% of the Outstanding Voting Stock of S

Essay

P Corporation acquired 80% of the outstanding voting stock of S Corporation when the fair values equaled the book values.
On July 1, 2016, P sold land to S for $300,000. The land originally cost P $200,000. S recently resold the land on October 30, 2017 for $350,000.
On October 1, 2017, S Corporation sold equipment to P Corporation for $80,000. S originally paid $100,000 for this equipment and had accumulated depreciation of $40,000 thus far. The equipment has a five-year remaining life.
Required:
A. Complete the consolidated income statement for P Corporation and subsidiary for the year ended December 31, 2017.