Pico Company, a truck manufacturer, owns 90% of the voting stock of Seward Company. On January 1, 2019, Pico Company sold trucks to Seward Company for $350,000. The trucks, which represented inventory to Pico Company, had a cost to Pico Company of $260,000. The management of Seward Company estimated that the trucks had a useful life of six years from the date of purchase. Seward Company uses the straightline method to depreciate its capital assets.

In 2019, Pico Company reported $600,000 in net income from its independent operations (including sales to affiliates but excluding dividend or equity income from subsidiary), and Seward Company reported $200,000 in net income from its operations.

Required:

1. Prepare in general journal form the workpaper entries necessary because of the intercompany sales in:
   1. The consolidated financial statements workpaper for the year ended December 31, 2019.
   2. The consolidated financial statements workpaper for the year ended December 31, 2020.
2. Calculate controlling interest in consolidated net income for the year ended December 31, 2019.