P Company owns an 75% interest in S Company. During 2014, S sells merchandise to P for $200,000 at a profit of $40,000. On December 31, 2014, 25% of this merchandise is included in Ps inventory. Income statements for P and S are summarized below:

P __ S __

Sales$1,200,000$600,000

Cost ofSales(600,000) (400,000)

OperatingExpenses(300,000)( 80,000)

Net Income(2014)$300,000$120,000

What is the controlling consolidated income for 2014?