PROBLEM $1$

Solvent is a $92\%-$owned subsidiary of the Painter Company. The two affiliates had the following separate income statements for $20$X$1$ and $20$X$2.$

Solvent sells at the same gross profit percentage to all customers in a particular year $($However$,$ note that the gross profit percentages may differ from year to year$).$ During $20x1,$ Solvent sold goods to Painter for the first time in the amount of $$120,000.$ $$70,000$ of these sales remained in Painter's ending inventory. During $20$X$2,$ sales to Painter by Solvent were $$200,000,$ of which $$90,000$ sales were still in Painter's December $31,20$X$2,$ inventory.

Prepare consolidated income statements including the distribution of income to the controlling and non$-$controlling interests for $20$X$1$ and $20$X$2.$