Summer Company sells all its output at $25$ percent above cost. Parade Corporation purchases all its inventory from Summer. Selected

information on the operations of the companies over the past three years is as follows:

Parade acquired $60$ percent of the ownership of Summer on January $1,20$X$1,$ at underlying book value.

Required:

Compute consolidated net income and income assigned to the controlling interest for $202,203,$ and $204.$ Summer Company sells all its output at $25$ percent above cost. Parade Corporation purchases all its inventory from Summer. Selected information on the operations of the companies over the past three years is as follows:

Year Summer Company Parade Corporation

Sales to Parade Corporation Net Income Inventory, December $31$ Operating Income

$20$X$2$ $ $200,000$ $ $111,000$ $ $70,000$ $ $156,000$

$20$X$3175,000101,000105,000251,000$

$20$X$4255,000171,000136,000307,000$

Parade acquired $60$ percent of the ownership of Summer on January $1,20$X$1,$ at underlying book value.

Required:

Compute consolidated net income and income assigned to the controlling interest for $20$X$2,20$X$3,$ and $20$X$4.$