Chapter#7 EXERCISE 7-1 On January 1, 2019, Sherwood Company, an 80% owned subsidiary of Paradise Company, sold to Paradise Company equipment with a book value of $600,000 for $840,000. The equipment had an estimated remaining useful life of eight years on the date of the intercompany sale. Paradise Company reported net income from its independent operations of $550,000, and Sherwood Company reported net income of $300,000 in the years of 2019 and 2020. Required: Calculate the controlling interest in combined net income for the years ended December 31, 2019, and December 31, 2020