10) Indirect Holdings: On January 1, 2011, Pen Corporation purchased a 80 percent interest in Sal Corporation at book value (equal to fair value). At that time, Sal owned a 60 percent interest in Tip Corporation (acquired at book value equal to fair value) and a 15 percent interest in Tip Company. The four companies had the following separate incomes and dividends for 2011

(separate income does not include investment income or dividend income):

		Separate Income		Dividends
Pen Corporation		$3,000,000		$700,000
Sal Corporation		$1,500,000		$400,000
Tip Corporation		$800,000		$200,000
Win Corporation		$600,000		$200,000

Required: Determine the controlling and non-controlling interest share of consolidated net income. Use the grid below for your calculations.

	Pen	Sal	Tip
Separate earnings
Controlling Share of Cons. Income
Noncontrolling interest share