Question $8.$ Downstream Sales

P Company owns $80\%$ of the common stock of S Company. P Company sells merchandise to S Company at $25\%$ above its cost. During $2019$ and $2020$ such sales amounted to $$132,500$ and $$237,500,$ respectively. The $2019$ and $2020$ ending inventorias of $S$ Company included goods purchased from P Company for $dotsdotsdots$2,$dotsdots$0$ and $$85,000,$ respectively. P Company reported net income from its independent operations $($including intercompany profit on inventory sales to affiliates$)$ of $$225,000$ in $2019$ and $$240,000$ in $2020.$ S reported net income of $$112,500$ in $2019$ and $$137,500$ in $2020$ and did not declare dividends in either year. There were no intercompany sales prior to $2019.$

Required:

A$.$ Prepare in general journal form all entries necessary in the consolidated financial statements workpapers to eliminate the effects of the intercompany sales for each of the years $2019$ and $2020.$

B$.$ Calculate the amount of noncontrolling interest to be deducted from consolidated income in the consolidated income statements for $2019$ and $2020.$

C$.$ Calculate controlling interest in consolidated income for $2020.$