P Company owns 104,000 of the 130,000 shares outstanding of S Corporation. S Corporation sold equipment to P Company on January 1, 2011 for $740,000. The equipment was originally purchased by S Corporation on January 1, 2010 for $1,280,000 and at that time its estimated depreciable life was 8 years. The equipment is estimated to have a remaining useful life of four years on January 1, 2011. Both companies use the straight-line method to depreciate equipment. In 2012 P Company reported net income from its independent operations of $3,270,000, and S Corporation reported net income of $820,000 and declared dividends of $60,000. P Company uses the cost method to record the investment in S Company.

Required:

A. Prepare, in general journal form, the workpaper entries relating to the intercompany sale of equipment that are necessary in the December 31, 2012 consolidated financial statements workpapers.

B. find out the amount of noncontrolling interest to be deducted from consolidated net income in the consolidated income statement for 2012.

C. find out controlling interest in consolidated net income for 2012.