Pisa company acquired 75 percent of Siena Company on January 1, 2003 at book value. During 2003, Siena purchased inventory for $35,000 and sold it to Pisa for $50,000. Of this amount, Pisa reported $20,000 in ending inventroy in 2003 and later sold it in 2004. In 2004, Pisa sold inventory it had purchased for $40,000 to Siena for $60,000. Siena sold $45,000 of this inventory in 2004. In 2004, Pisa reported stand-alone income of $550,000 and Siena reported total net income of $118,000.

a- Prepare the consolidation entries that related to intercompany sale of inventory for 2003.

b- Prepare the consolidation entries that related to intercompany sale of inventory for 2004.

c- Calculated consoildated net income AND income assigned to controlling shareholders in 2004.