P owns 60% of S1 and 40% of S2, S1.owns 30% of S2. Each firm reported $10,000 of income before calculating equity income or adjusting for intercompany exchanges. On 1/1 2020, S1 sold equipment with a 3 year remaining life to S2 resulting in a $6,000 loss. An analysis of 2020 intercompany inventory sale shows that Ps inventory includes $1,000 of unrealized gross profit on goods purchased from S1 and S1 inventory includes $2,000 of unrealized gross profit on goods purchased from S2.

Compute: The equity income that P will record for its investments in S1 and S2 (a single combined amount). Non-controlling interest income. CNI Income applicable to the controlling interest