On January 1, 2017, Doone Corporation acquired 70 percent of the outstanding voting

stock of Rockne Company for $462,000 consideration. At the acquisition date, the fair

value of the 30 percent noncontrolling interest was $198,000 and Rockne's assets and

liabilities had a collective net fair value of $660,000. Doone uses the equity method in

its internal records to account for its investment in Rockne. Rockne reports net income

of $220,000 in 2018. Since being acquired, Rockne has regularly supplied inventory to

Doone at 25 percent more than cost. Sales to Doone amounted to $280,000 in 2017

and $380,000 in 2018. Approximately 40 percent of the inventory purchased during

any one year is not used until the following year.

a. What is the noncontrolling interest's share of Rockne's 2018 income?

b. Prepare Doone's 2018 consolidation entries required by the intra-entity inventory

transfers.