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23) Pinta Company owns 90% of the common stock of Simplex Company. Simplex Company sells merchandise to Pinta Company at 25% above cost. During 2019

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23) Pinta Company owns 90% of the common stock of Simplex Company. Simplex Company sells merchandise to Pinta Company at 25% above cost. During 2019 and 2020 such sales amounted to $800,000 and $1,020,000, respectively. At the end of each year, Pinta Company had in its inventory one-fourth of the amount of goods purchased from Simplex Company during that year. Pinta Company reported income of $1,500,000 from its independent operations in 2019 and $1,720,000 in 2020. Simplex Company reported net income of $600,000 in each year and did not declare any dividends in either year. There were no intercompany sales prior to 2019. Required: A. Prepare, in general journal form, all entries necessary on the 2020 consolidated statements workpaper to eliminate the effects of intercompany sales assuming Pinta uses the partial equity method to account for its investment in Simplex. B. Calculate the amount of noncontrolling interest in consolidated net income for 2020. C. Calculate controlling interest in consolidated net income for 2020. 23) Pinta Company owns 90% of the common stock of Simplex Company. Simplex Company sells merchandise to Pinta Company at 25% above cost. During 2019 and 2020 such sales amounted to $800,000 and $1,020,000, respectively. At the end of each year, Pinta Company had in its inventory one-fourth of the amount of goods purchased from Simplex Company during that year. Pinta Company reported income of $1,500,000 from its independent operations in 2019 and $1,720,000 in 2020. Simplex Company reported net income of $600,000 in each year and did not declare any dividends in either year. There were no intercompany sales prior to 2019. Required: A. Prepare, in general journal form, all entries necessary on the 2020 consolidated statements workpaper to eliminate the effects of intercompany sales assuming Pinta uses the partial equity method to account for its investment in Simplex. B. Calculate the amount of noncontrolling interest in consolidated net income for 2020. C. Calculate controlling interest in consolidated net income for 2020

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