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Power Products Corporation, which sells a broad line of home detergent products, owns $75$ percent of the stock of Scrub Soap Company. During $208,$ Scrub sold soap products to Power Products for $$180,000,$ which it had produced for $$120,000.$ Power Products sold $$150,000$ of its purchase from Scrub in $208$ and the remainder in $209.$ In addition, Power Products purchased $$240,000$ of inventory from Scrub in $209$ and resold $$90,000$ of the items before year$-$end. Scrub's cost to produce the items sold to Power Products in $209$ was $$160,000.$

Required:

a$.$ Prepare the worksheet consolidation entries needed for December $31,209,$ to remove the effects of the intercompany inventory transfers in $208$ and $209.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Consolidation Worksheet Entries

A

B

Record the entry to reverse the $208$ gross profit deferral.

Note: Enter debits before credits.

$\backslash$table$[[$Entry$,$Accounts,Debit,Credit$],[1,$Sales,$7,240,000,],[$Cost of goods sold,$,,190,000],[,,,50,000],[,,,,],[,,,,],[,,,,]]$

b$.$ Compute the amount of income assigned to noncontrolling shareholders in the $208$ and $209$ consolidated income statements if Scrub reported net income of $$350,000$ for $208$ and $$420,000$ for $209.$

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