Question 1: P Company owns 80% of the common stock of Company. P sells merchandise to Sat 20% above cost. During 2011 and 2012, intercompany sales amounted to $1,080,000 and $1,200,000 respectively. At the end of 2011, S had one-fifth of the goods purchased that year from P in its ending inventory. S's 2012 ending inventory contained one-fourth of that year's purchases from P. There were no intercompany sales prior to 2011. P reported net income from its own operations of $720,000 in 2011 and $760,000 in 2012. S reported net income of $400,000 in 2011 and $460,000 in 2012. Neither company declared dividends in either year. Required: 1. Prepare in general journal form all entries necessary on the consolidated statements workpapers to eliminate the effects of the intercompany sales for both 2011 and 2012. 2. Calculate controlling interest in consolidated net income for 2012. Question 2: On January 1, 2011, Price Company purchased an 80% interest in the common stock of Stahl Company for $1,040,000, which was $60,000 greater than the book value of equity acquired. The difference between implied and book value relates to the subsidiary's land. The following information is from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2011: STAHL CONSOLIDATED COMPANY BALANCES 1701/11 retained earnings $300,000 $1,400,000 Net income 220,000 680,000 Dividends declared 180.000 7140,000) 12731711 retained earnings SALO2000 S69407000 Stahl's stockholders equity includes only common stock and retained eamings. Required: 1. Prepare the workpaper eliminating entries for a consolidated statements workpaper on Question 2: On January 1, 2011, Price Company purchased an 80% interest in the common stock of Stahl Company for $1,040,000, which was $60,000 greater than the book value of equity acquired. The difference between implied and book value relates to the subsidiary's land. The following information is from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2011: STAHL CONSOLIDATED COMPANY BALANCES 1701711 retained earnings $300,000 $1,400,000 Net income 220,000 680,000 Dividends declared (80,000) (140,000) 12/31711 retained earnings $440,000 ST1940,000 Stahl's stockholders equity includes only common stock and retained earnings. Required: 1. Prepare the workpaper eliminating entries for a consolidated statements workpaper on December 31, 2011. Price uses the cost method. 2. Compute the total noncontrolling interest to be reported on the consolidated balance sheet on December 31, 2011