E 7-4 Subsidiary purchases parent bonds On January 1, 2014, Petr SA purchased half of Lenka SA’s outstanding 10 percent bond for $550,000 cash. Petr SA was the 80 percent-owned subsidiary of Lenka SA with no book value/fair value difference. At that time, the outstanding bonds had a par value of $1,000,000 with $200,000 unamortized discount. The bonds mature on January 1, 2019. At the end of year 2014, Petr SA reported net income of $500,000.

REQuIRED 1. Calculate income from Petr SA for 2014.
2. Calculate noncontrolling interest share for 2014.