1. Pine Company owns an 80% interest in Salad Company and a 90% interest in Tuna Company. During 2016 and 2017, intercompany sales of merchandise were made by all three companies. Total sales amounted to $2,400,000 in 2016, and $2,700,000 in 2017. The companies sold their merchandise at the following percentages above cost.

Pine 15%

Salad 20%

Tuna 25%

The amount of merchandise remaining in the 2017 beginning and ending inventories of the companies from these intercompany sales is shown below.

Reported net incomes (from independent operations including sales to affiliates) of Pine, Salad, and Tuna for 2017 were $3,600,000, $1,500,000, and $2,400,000, respectively.

Required:

1. Calculate the amount noncontrolling interest to be deducted from consolidated income in the consolidated income statement for 2017.
2. Calculate the controlling interest in consolidated net income for 2017.

Merchandise Remaining in Beginning Inventory Pine Salad Tuna Total Sold by Pine Salad Tuna $ 225,000 $ 189,000 $ 414,000 $ 180,000 $ 216,000 $ 396,000 $ 180,000 $ 135,000 $ 315,000 Merchandise Remaining in Ending Inventory Pine Salad Tuna Total Sold by Pine Salad Tuna $ $ $ 207,000 $ 138,000 $ 345,000 144,000 $ 198,000 $ 342,000 195,000 $ 150,000 $ 345,000