Pinta Company, a forklift manufacturer, owns 80% of the voting stock of Standard Company. On January 1, 2019, Pinta Company sold forklifts to Standard Company for $400,000. The forklifts, which represented inventory to Pinta Company, had a cost to Pinta Company of $310,000. The management of Standard Company estimated that the forklifts had a useful life of nine years from the date of purchase. Standard Company uses the straight-line method to depreciate its capital assets. In 2019, Pinta Company reported $700,000 in net income from its independent operations (including sales to affiliates), and Standard Company reported $250,000 in net income from its operations.

Required:

A. Prepare in general journal form the workpaper entries necessary because of the intercompany sales in:

(1) The consolidated financial statements workpaper for the year ended December 31, 2019.

(2) The consolidated financial statements workpaper for the year ended December 31, 2020.

B. Calculate controlling interest in consolidated net income for the year ended December 31, 2019.