Penn Company owns a 90% interest in Salvador Company and an 80% interest in Sencal Company. Profit remaining in ending inventories from intercompany sales for 2024 and 2025 is indicated below.

Salvador Company reported net income of $50,000 in 2024 and $45,000 in 2025, whereas Sencal Company’s net income was $60,000 and $75,000 in 2024 and 2025, respectively. Penn Company’s net income from its own operations (including sales to affiliates) for 2024 and 2025 was $600,000 and $400,000, respectively.

Required:
A. Determine noncontrolling interest in consolidated income for 2024 and 2025.
B. Calculate the controlling interest in consolidated income for 2024 and 2025.

Transcribed Image Text:

Selling Company Penn Salvador Sencal Salvador $8,000 5,000 Intercompany Profit in Ending Inventory of 2024 2025 Sencal $4,000 6,000 Salvador $5,000 2,000 Sencal $9,000 10,000