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Exercise 7-7 On January 1, 2013, Price Company acquired an 80% interest in the common stock of Smith Company on the open market for $724,800, the book value at that date. On January 1, 2014, Price Company purchased new equipment for $13,800 from Smith Company. The equipment cost $9,200 and had an estimated life of five years as of January 1, 2014. During 2015, Price Company had merchandise sales to Smith Company of $109,500; the merchandise was priced at 25% above Price Company's cost. Smith Company still owes Price Company $19,000 on open account and has 20% of this merchandise in inventory at December 31, 2015. At the beginning of 2015, Smith Company had in inventory $24,200 of merchandise purchased in the previous period from Price Company. (b) Assume that Smith Company reports net income of $42,200 for the year ended December 31, 2015. Calculate the amount of noncontrolling interest to be deducted from consolidated income in the consolidated income statement for the year ended December 31, 2015. Noncontrolling Interest in Consolidated Income $ Pinta Company, a forklift manufacturer, owns 80% of the voting stock of Standard Company. On January 1, 2014, Pinta Company sold forklifts to Standard Company for $406,800. The forklifts, which represented inventory to Pinta Company, had a cost to Pinta Company of $309,600. 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 straightline method to depreciate its capital assets. In 2014, Pinta Company reported $734,600 in net income from its independent operations (including sales to affiliates), and Standard Company reported $258,600 in net income from its operations. (b) Calculate controlling interest in consolidated net income for the year ended December 31, 2014. Controlling Interest in Consolidated Net Income

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