Parent Company holds 80 percent ownership of Subsidiary Company, and Subsidiary Company owns 90 percent of the

Question:

Parent Company holds 80 percent ownership of Subsidiary Company, and Subsidiary Company owns 90 percent of the stock of Tiny Corporation. What effect will $100,000 of unrealized intercompany profits on Tiny's books on December 31, 20X5, have on the amounts reported as consolidated net income and income assigned to the controlling interest?