**Note this uses the upstream Inventory method*

*Upstream invenotry transaction On January 2, 2021, Penn Company purchased 80% of the outstanding common shares of Senn Company. During 2021, Senn Company sold merchandise that cost $2,700 to Penn Company for $3,600. Penn Co. sold all but $600 of this merchandise to its customers for $3,700 on account. Senn Co. reported net income of $3,000 and Penn Co. reported separate operating income (excluding income from Senn Co.) of $5,000 during 2021. Q1. Prepare eliminatina (consolidation) entries for intercompanv transactions on December 31, 2021. Q2. What is the consolidated net income? Answer: Q3. what is the net income attributable to NCl(NCl in NI) ? Answer: Q4. What is the Net Income attributable to Controlling Interest (Controlling Interest Net Income)? Answer: Q5. Based on the information above, please complete the following worksheet