Up and its 80% owned subsidiary (down) reported the following figures for the year ending Dec. 31, 2011. Down paid dividens of $30,000 during this period.

UP Down
Sales $(600,000) $(300,000)
COGs 300,000 140,000
Operating expenses 174,000 60,000
Dividen Income (24,000) 0
Net Income $(150,000) $(100,000)

In 2010, unrealized gains of $30,000 on upstream transfers of $90,000 were deferred into 2011. In 2011, unrealized gains of $40,000 on upstream transfers of $110,000 were deferred into 2012.

Question:

a. What figures appear 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.