Investment recording methods. Solara Corporation is considering investing in Focus Corporation, but is unsure about what level of ownership should be undertaken. Solara and Focus have the following reported incomes:

Solara

Focus

Sales

$640,000

$370,000

Cost of goods sold

300,000

230,000

Gross profit

$340,000

$140,000

Selling and administrative expenses

120,000

75,000

Net income

$220,000

$65,000

Focus paid $15,000 in cash dividends to its investors. Prepare a pro forma income statement for Solara Corporation that compares income under 10%, 20%, and 70% ownership levels.