Buddy Corporation acquired 80 percent of the outstanding voting stock of Zoe Inc., on January 1, 2019 when Zoe had a net book value of $400,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $5,000 per year. Buddy's 2020 net income before consideration of its relationship with Zoe (and before adjustments for intra-entity sales) was $300,000. Zoe reported net income of $110,000. Buddy declared $100,000 in dividends during this period; Zoe paid $40,000. At the end of 2020, selected figures from the two companies' balance sheets were as follows: Inventory Land Equipment (net) Buddy Zoe $ 140,000 $90,000 600,000 200,000 400.000 300,000 During 2019, intra-entity sales of $90,000 (original cost of $54,000) were made. Only 20 percent of this inventory was still held within the consolidated entity at the end of 2019. In 2020, $120,000 in intra-entity sales were made with an original cost of $66,000. Of this merchandise, 30 percent had not been resold to outside parties by the end of the year. Each of the following questions should be considered as an independent situation for the year 2020. 1. What is consolidated net income for Buddy and its subsidiary? 2. If the intra-entity sales were upstream, how would consolidated net income be allocated to the controlling interest ? 3. If the intra-entity sales were downstream, how would consolidated net income be allocated to the controlling interest? 4. What is the consolidated balance in the ending Inventory account? 5. Assume that no intra-entity inventory sales occurred between Buddy and Zoe. Instead, in 2019, Zoe sold land costing $30,000 to Buddy for $50,000. On the 2020 consolidated balance sheet, what value should be reported for land? 6. Assume that no intra-entity inventory or land sales occurred between Buddy and Zoe Instead, on January 1, 2019, Zoe sold equipment that originally cost $100,000 but had a $60,000 book value on that date) to Buddy for $80,000. At the time of sale, the equipment had a remaining useful life of five years. For 2019, what is the noncontrolling interest's share of Zoe's net income