Carroll Company sells all its output at 25 percent above cost. Pacific Corporation purchases all its inventory from Carroll. Selected information on the operations of the companies over the past three years is as follows:

Pacific acquired 60 percent of the ownership of Carroll on January 1, 20X1, at underlying book value.

Required
Compute consolidated net income and income assigned to the controlling interest for 20X2, 20X3, and20X4.

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Carroll Company Pacific Corporation Year 20X2 20X3 20X4 Sales to Pacific Corp. $200,000 175,000 225,000 Net Income $100,000 90,000 160,000 Inventory, Dec. 31 S 70,000 105,000 120,000 Operating Income $150,000 240,000 300,000