Refer to Exercise 6‑1. Calculate the amount of the noncontrolling interest to be deducted from consolidated income in arriving at 2019 controlling interest in consolidated net income.

Exercise 6‑1

P Company owns 80% of the outstanding stock of S Company. During 2019, S Company reported net income of $525,000 and declared no dividends. At the end of the year, S Company’s inventory included $487,500 in unrealized profit on purchases from P Company. Intercompany sales for 2019 totaled $2,700,000.