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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

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:

Summer Company Parade Corporation
Year Sales to Parade Corp. Net Income Inventory, Dec. 31 Operating Income
20X2 $ 200,000 $ 101,000 $ 70,000 $ 169,000
20X3 175,000 91,000 105,000 253,000
20X4 243,000 161,000 129,600 316,000

Parade acquired 70 percent of the ownership of Summer on January 1, 20X1, at underlying book value. Required: Compute consolidated net income and income assigned to the controlling interest for 20X2, 20X3, and 20X4.

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