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26) Prince Company owns 104,000 of the 130,000 shares outstanding of Serf Corporation. Serf Corporation sold equipment to Prince Company on January 1, 2019 for

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26) Prince Company owns 104,000 of the 130,000 shares outstanding of Serf Corporation. Serf Corporation sold equipment to Prince Company on January 1, 2019 for $740,000. The equipment was originally purchased by Serf Corporation on January 1, 2015 for $1,280,000 and at that time its estimated depreciable life was 8 years. The equipment is estimated to have a remaining useful life of four years on January 1, 2019. Both companies use the straight-line method to depreciate equipment. In 2020 Prince Company reported net income from its independent operations of $3,270,000, and Serf Corporation reported net income of $820,000 and declared dividends of $60,000. Prince Company uses the cost method to record the investment in Serf Company. Required: A. Prepare, in general journal form, the workpaper entries relating to the intercompany sale of equipment that are necessary in the December 31, 2020 consolidated financial statements workpapers. B. Calculate the amount of noncontrolling interest in consolidated net income for 2020. C. Calculate controlling interest in consolidated net income for 2020. 26) Prince Company owns 104,000 of the 130,000 shares outstanding of Serf Corporation. Serf Corporation sold equipment to Prince Company on January 1, 2019 for $740,000. The equipment was originally purchased by Serf Corporation on January 1, 2015 for $1,280,000 and at that time its estimated depreciable life was 8 years. The equipment is estimated to have a remaining useful life of four years on January 1, 2019. Both companies use the straight-line method to depreciate equipment. In 2020 Prince Company reported net income from its independent operations of $3,270,000, and Serf Corporation reported net income of $820,000 and declared dividends of $60,000. Prince Company uses the cost method to record the investment in Serf Company. Required: A. Prepare, in general journal form, the workpaper entries relating to the intercompany sale of equipment that are necessary in the December 31, 2020 consolidated financial statements workpapers. 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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