Parent Corp. owns 70% of the voting shares of Sub Ltd. During 20X4, Sub Ltd. sold inventory costing $640,000 to Parent Corp. for $800,000. At December 31, 20X4, Parent Corp. still had $400,000 of these goods in its inventory, and had not yet paid for $500,000 of the goods. All of the remaining goods were sold in 20X5.

Sub Ltd. also sold a piece of land (cost of $180,000) to Parent Corp. on July 1, 20X4, for $260,000, for which Parent Corp. had issued Sub Ltd. a five-year, 10%-per-annum note. The interest will be paid on July 1, 20X5.

Required

1. Prepare the consolidation-related eliminations required in 20X4 and 20X5, respectively.

2. Assuming that Sub Ltd. earned $680,000 during 20X4 and $880,000 during 20X5, calculate the non-controlling interest in the earnings of Sub Ltd.