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Royal Group has owned sixty percent of the outstanding shares of Durban for a number of years. Durban reported net income for 2011 of $240,000. Since being acquired, Durban has regularly supplied inventory to Royal at twenty percent more than cost. Sales to Royal amounted to S504.000 in 2010 and S576,000 in 2011. Ten percent of the inventory purchased during any one year is not used until the following year.
What is the non controlling interest's share of Durban's income in 2011?
Prepare the 2011 consolidation entries that would be required by the intercompany inventory transfers.
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