On October 1, 2017, P. Company purchased 90% of the common stock of S. Company for $290,000. Additional information for both companies for 2017 follows: 

P. S Common stock ...................................................................$300,000 ................................     $90,000 

Other contributed capital ..........................................................120,000 ................................       40,000 

Retained Earnings, 1/1 ..............................................................240,000 .................................       50,000 

Net Income 260,000 160,000 Dividends declared (10/31) .....40,000 .................................         8,000 

Any difference between implied and book value relates to S’s land. 

P. uses the cost method to record its investment in S. S. Company’s income was earned evenly throughout the year.

Required: 

A. Prepare the workpaper entries that would be made on a consolidated statements workpaper on December 31, 2017. Use the full year reporting alternative. 

B. Calculate the controlling interest in consolidated net income for 2017.