Dills Company Purchased an 80% Interest in the Common Stock

Dills Company purchased an 80% interest in the common stock of Sarada Company for $140,000 on January 1, 2018.On this date the book value of Sarada's net identifiable assets totaled $100,000.Any excess was attributed to a patent with a 10-year life.
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During 2019, Dills Company and Sarada Company reported the following internally generated income before taxes:
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$\begin{array}{lrr} & \text { Dills Co. } & \text { Sarada Co. } \\\text { Sales } & \$ 300,000 & \$ 120,000 \\\text { Cost of goods sold } & (200,000) & (90,000) \\\text { Gain on machine } & 10,000 & -- \\\text { Expenses } & (40,000) & (20,000) \\\text { Income before taxes } & \$ 70,000 & \$ 10,000 \\\end{array}$ Sarada Company routinely sells goods to Dills Company.This year those sales amounted to $60,000.Dills Company inventories included intercompany goods of $30,000 at the beginning of the year and $12,000 at the end of the year.Sarada Company sells goods to Dills Company at a gross profit of 16.67%.
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On January 1, 2019 Dills Company sold a new machine to Sarada Company, for $40,000.The cost of the machine was $30,000.It has a 5-year life.
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The firms file separate tax returns.Both are subject to a 30% tax rate.Dills Company receives an 80% dividend deduction.
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Required:
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Prepare a consolidated income statement for 2019.Include income distribution for both firms.