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 2019 and 2020 is indicated below.

Salvador Company reported net income of $50,000 in 2019 and $45,000 in 2020, whereas Sencal Company?s net income was $60,000 and $75,000 in 2019 and 2020, respectively. Penn Company?s net income from its own operations (including sales to affiliates) for 2019 and 2020 was $600,000 and $400,000, respectively.

Required:

A. Determine noncontrolling interest in consolidated income for 2019 and 2020.

B. Calculate the controlling interest in consolidated income for 2019 and 2020.

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Intercompany Profit in Ending Inventory of 2019 2020 Salvador Salvador Sencal Sencal Selling Company Penn Salvador Sencal $8,000 $5,000 $ 9,000 10,000 $4,000 6,000 2,000 5,000