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 2011 and 2012 is indicated below.

Salvador Company reported net income of $50,000 in 2011 and $45,000 in 2012, whereas Sencal Company’s net income was $60,000 and $75,000 in 2011 and 2012, respectively.
Penn Company’s net income from its own operations (including sales to affiliates) for 2011 and 2012 was $600,000 and $400,000, respectively.

Required:
A. Determine noncontrolling interest in consolidated income for 2011 and 2012.
B. Calculate the controlling interest in consolidated income for 2011 and2012.

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Intercompany Profit in Ending Inventory of 2011 2012 Selling Company Penn Salvadoir Sencal Salvador $8,000 5,000 Sencal Salvadmr 5,000 2,000 Sencal 9,000 10,000 $4,000 6,000