Pisa Company acquired 75 percent of Siena Company on January 1, 20X3 for $712,500. The fair value of the noncontrolling interest was equal to 25 percent of book value. On the date of acquisition, Siena had common stock outstanding of $300,000 and a balance in retained earnings of $650,000. During 20X3, Siena purchased inventory for $35,000 and sold it to Pisa for $50,000. Of this amount, Pisa reported $20,000 in ending inventory in 20X3 and later sold it in 20X4. In 20X4, Pisa sold inventory it had purchased for $40,000 to Siena for $60,000. Siena sold $45,000 of this inventory in 20X4.

Required:

(a.)Give the appropriate 2003 elimination entry or entries needed in a three-part consolidation workpaper to eliminate the effects of the 2003 inventory sales from Sienna to Pisa.

(b.) Give the appropriate 2004 elimination entry or entries needed in a three-part consolidation workpaper to eliminate the effects of the inventory sales between Sienna and Pisa.

(c.) If the 2004 net income of Sienna was $200,000, compute the income to the non-controlling interest.