QUESTION $3$

Poole Company owns a $90\%$ interest in Solumbra Company. The consolidated income statement drafted by the controller of Poole Company appeared as follows:

Poole Company and Subsidiary

Consolidated Income Statement

For theYear Ended December $31,2017$

Sales

$$13,800,000$

Cost of Sales

Operating Expenses

Consolidated Income

Less Noncontrolling Interest in Consolidated Income $q,$

Controlling Interest in Consolidated Net Income

$$2,810,{000}_{?}$

During your audit you discover that intercompany sales transactions were not reflected in the controller's draft of the consolidated income statement. Information relating to intercompany sales and unrealized intercompany profit is as follows:

$\backslash$table$[[,$Cost,$\backslash$table$[[$Selling$],[$Price$]],\backslash$table$[[$Unsold at$],[$Year$-$End$]]],[2016$ Sales$$Solumbra to Poole,$$1,500,000,$$$1,800,000,\frac{1}{4}$