Pace Company owns 85% of the outstanding common stock of Sand Company and all the outstanding common stock of Star Company. During 2020, the affiliates engaged in intercompany sales as follows:

Sales of MerchandisePace to Sand......................$ 40,000Sand to Pace.........................60,000Sand to Star..........................75,000Star to Pace..........................50,000...........................................$225,000

The following amounts of intercompany profits were included in the December 31, 2019, and December 31, 2020, inventories of the individual companies:

Income from each company?s independent operations (including sales to affiliates) for the year ended December 31, 2020, is presented here:

Pace Company......................$200,000Sand Company.......................150,000Star Company.........................125,000

Required:

A. Prepare in general journal form the workpaper entries necessary to eliminate intercompany sales and intercompany profit in the December 31, 2020, consolidated financial statements workpaper.

B. Calculate the balance to be reported in the consolidated income statement for the following line items:Consolidated incomeNoncontrolling interest in consolidated incomeControlling interest in consolidated income

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Intercompany Profit in December 31, 2019, Inventory of Selling Company Pace Company Sand Company Star Total Sand Pace $ 7,000 8,000 $7,000 $ 5,000 $3,000 Star Company Total 8,000 8,000 $7,000 $3,000 $13,000 $23,000 Intercompany Profit in December 31, 2020, Inventory of Selling Company Total Pace Sand Star Pace Company $2,000 $ 6,000 4,000 $ 2,000 15,000 4,000 $9,000 Star Company Total $10,000 $2,000 $9,000 $21,000