Elimination of Unrealized Profit on Intercompany Sales of Inventory Peterson owns 80% of Seavoss, acquired several years ago at a price equal to book value. Petersen and Seavoss sell merchandise to each other. For 2014, unconfirmed profits in inventories are as follows: Total upstream sales in 2014 were $400,000: downstream sales were $600,000. Seavoss' reported income for 2014 was $100,000. Required: Prepare the necessary consolidation working paper eliminations for 2014. Calculate Peterson's equity in Seavoss income for 2014, assuming the only intercompany eliminations are for merchandise sales. Calculate the noncontrolling interest in consolidated net income for 2014, assuming the only intercompany eliminations are for merchandise sales. Powers company owns an 80% interest in Smiley Company and a 90% interest in Toro Company. During 2010 and 2011, intercompany sales of merchandise were made by all three companies. Total sales amounted to $2, 400,000 in 2010, and $2, 700,000 in 2011. The companies sold their merchandise at the following percentages above cost. Powers 15% Smiley20% Toro25% The amount of merchandise remaining in the 2011 beginning and ending inventories of the companies from these intercompany sales is shown below. Reported net incomes (from independent operations including sales to affiliates) of Powers, Smiley, and Toro for 2011 were $3, 600,000, $1, 500,000, and $2, 400,000, respectively. Required: Calculate how the consolidated net income for 2011 will be shared between controlling interest and noncontrolling interest