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 $504,000 in 2010 and $576,000 in 2011. Ten percent of the inventory purchased during any one year is not used until the following year.
Required:
What is the noncontrolling interest's share of Durban’s income in 2011?
Prepare the 2011 consolidation entries that would be required by the intercompany inventory transfers.