Petersen owns 80% of Seavoss, acquired several years ago at a price equal to book value. Petersen and Seavoss sell merchandise to each other. For 2018, unconfirmed profits in inventories are as follows:

Beginning Inventory Ending Inventory

Petersen $20,000 $25,000

Seavoss $10,000 $8,000

Total upstream sales i 2018 were $400,000; downstream sales were $600,000. Seavoss' reported income for 2018 was $100,000.

a.) Prepare the necessary consolidation working paper eliminations for 2018.

b.) Calculate Petersen's equity in net income for 2018 and the noncontrolling interest in net income for 2018
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