Company P purchased a 20% interest in Company S on January 1, 20X1, for $100,000 when Company P had a total equity of $400,000. The 20% investment was considered influential, and the sophisticated equity method was used to account for it. On January 1, 20X4, Company P purchased another 40% interest for $250,000. Company S’s equity on January 1, 20X4, was $500,000. Company S earned $50,000 during 20X4. Company P had an internally generated net income of $100,000. For both purchases, any excess of cost over book value was attributed to equipment with a 10-year life. Calculate consolidated income for 20X4 and the distribution of consolidated income to the noncontrolling and controlling interests.

AppendixLO1