Upstream Eliminating Entries and Consolidated Net Income, Comprehensive ProblemOn January 2, 2014, Patten Company purchased a 90% interest in Sterling Company for $1,400,000. At that timeSterling Company had capital stock outstanding of $800,000 and retained earnings of $425,000. The differencebetween book value of equity acquired and the value implied by the purchase price was allocated to the followingassets:Inventory $ 41,667Plant and Equipment (net) 200,000Goodwill 88,889The inventory was sold in 2014. The plant and equipment had a remaining useful life of 10 years onJanuary 2, 2014.During 2014 Sterling sold merchandise with a cost of $950,000 to Patten at a 20% markup above cost. AtDecember 31, 2014, Patten still had merchandise in its inventory that it purchased from Sterling for $576,000.In 2014, Sterling Company reported net income of $410,000 and declared no dividends

Required: A. Prepare in general journal form all entries necessary on the consolidated financial statements workpaper toeliminate the effects of the intercompany sales, to eliminate the investment account, and allocate the differencebetween book value of equity acquired and the value implied by the purchase price.B. Assume that Patten Company reports net income of $2,000,000 from its independent operations. Calculatecontrolling interest in consolidated net income.C. Calculate noncontrolling interest in consolidated income