Prem Company acquired 60 percent ownership of Cooper Company's voting shares on January 1, 20X2. During 20X5, Prem purchased inventory for $20,000 and sold the full amount to Cooper Company for $30,000. On December 31, 20X5, Cooper's ending inventory included $6,000 of items purchased from Prem. Also in 20X5, Cooper purchased inventory for $50,000 and sold the units to Prem for $80,000. Prem included $20,000 of its purchase from Cooper in ending inventory on December 31, 20X5.

Summary income statement data for the two companies revealed the following:

	Prem Company	Cooper Company
Sales	$400,000	$200,000
Income from Cooper	20,500
	$420,500	$200,000
Cost of Goods Sold	$250,000	$120,000
Other Expenses	70,000	35,000
Total Expenses	$ (320,000)	$(155,000)
Net Income	$100,500	$45,000

1. Compute the amount to be reported as sales in the 20X5 consolidated income statement.

2. Compute the amount to be reported as cost of goods sold in the 20X5 consolidated income statement.

3. What amount of income will be assigned to the noncontrolling shareholders in the 20X5 consolidated income statement?

4. What amount of income will be assigned to the controlling interest in the 20X5 consolidated income statement?