Philip Inc acquired a 70% interest in Jeff Inc several years ago. In 20X1, Jeff Inc sold inventory costing $150,000 to Philip Inc for $180,000. 20% of them were unsold until 20X2 (next year). In 20X2, Jeff sold inventory costing $120,000 to Philip again for $160,000 40% of them were unsold. In 20X2, Philip reported COGS of $300,000 while Jeff reported $400,000.

Philip 20X2 income: $800,000;

Jeff 20X2 income: $400,000.

What is the controlling interest in the 20X2 income of the subsidiary if all the above intra-entity transfers are downstream sales and parent uses equity method?