ERCISE 6-3 Noncontrolling Interest, Upstream Sales Peabody Company owns 90% of the outstanding capital stock of Sloane Company. During 2011 and 2012 Sloane Company sold merchandise to Peabody Company at a markup of 25% of selling price. The selling price of the merchandise sold during the two years was $20,800 and $25,000, respectively. At the end of each year, Peabody Company had in its inventory one fourth of the goods purchased that year ham Sloane Company. Sloane Company reported net income of $30,000 in 2011 and $35,000 in 2012. Required: Determine the amount of the noncontrolling interest in consolidated income to be reported for 2011 and 2012