24) On January 1, 2020, Pharma Company purchased a 90% interest in Sandy Company for $2,800,000. At that time, Sandy had $1,840,000 of common stock and $360,000 of retained earnings. The difference between implied and book value was allocated to the following assets of Sandy Company: Inventory Plant and equipment (net) Goodwill $ 80,000 240,000 591,111 The plant and equipment had a 10-year remaining useful life on January 1, 2020. During 2020, Pharma sold merchandise to Sandy at a 20% markup above cost. At December 31, 2020, Sandy still had $180,000 of merchandise in its inventory that it had purchased from Pharma. In 2020, Pharma reported net income from independent operations of $1,600,000, while Sandy reported net income of $600,000.

Required: A. Prepare the workpaper entries to allocate, amortize, and depreciate the difference between implied and book value for 2020.

B. Calculate noncontrolling and controlling interest in consolidated net income for 2020.