Small town retail owns 70% of Supplier Corporation’s common stock. For the current financial year, small town supplier reported sales of $450,000 and $300,000 and expenses of $290,000 and $240,000. Based on the preceding information, what is the amount of net income to be reported in the consolidated income statement for the year under the parent company theory approach

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.