Pace Company owns 85% of the outstanding common stock of Sand Company and all the outstanding common stock of Star Company. During 2012, the affiliates engaged in intercompany sales as follows:

Sales of Merchandise

Pace to Sand.......$ 40,000

Sand to Pace.......60,000

Sand to Star.......75,000

Star to Pace.......50,000

............$225,000

The following amounts of intercompany profits were included in the December 31,2011, and December 31, 2012, inventories of the individual companies:

Income from each company’s independent operations (including sales to affiliates) for the year ended December 31, 2012, is presented here:
Pace Company......$200,000
Sand Company......150,000
Star Company......125,000

Required:
A. Prepare in general journal form the workpaper entries necessary to eliminate intercompany sales and intercompany profit in the December 31, 2012, consolidated financial statements workpaper.
B. Calculate the balance to be reported in the consolidated income statement for the following line items:
Consolidated income Noncontrolling interest in consolidated income
Controlling interest in consolidatedincome

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Intercompany Profit in December 31, 2011, Inventory of Selling Com any Pace Sand Star Total $ 7,000 8,000 8,000 23,000 $7,000 Pace Company Sand Company Star Company 5,000 8,000 $13.000 $3,000 Total 7,000 3,000 Intercompany Profit in December 31, 2012, Inventory of Selling Company Pace Company Sand Company Star Company Pace Sand Slar Total 2,000 15,000 4,000 $2,000 6,000 4,000 10.000 $9,000 Total 52.000 9,000 $21000