Poom Manufacturing used cash to acquire 75 percent of the voting stock of Satellite Industries on January 1, 20X3, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 25 percent of Satellite's book value. Poom accounts for its investment in Satellite using the equity method. Poom had no inventory on hand on January 1, 20X5. During 20X5, Poom purchased $300,000 of goods from Satellite and had $100,000 remaining on hand at the end of 20X5. Satellite normally prices its items so that their cost is 70 percent of sale price. On January 1, 20X5, Satellite held inventory that it had purchased from Poom for $50,000. Poom's cost of producing the items was $30,000. Satellite sold all of the merchandise in 20X5 and made no inventory purchases from Poom during 20X5. On July 15, 20X5, Satellite sold land that it had purchased for $240,000 to Poom for $360,000. The companies file separate tax returns and have a 40 percent income tax rate. Poom does not record tax expense on its portion of Satellite's undistributed earnings. Tax expense recorded by Poom in 20X5 with regard to its investment in Satellite is based on dividends received from Satellite in 20X5. In computing taxable income, 80 percent of intercorporate dividend payments are exempt from tax. Satellite reported net income of $190,000 for 20X5 and net assets of $900,000 on December 31, 20X5. Poom's reported income before investment income from Satellite and income tax expense of $700,000 for 20X5. Satellite and Poom paid dividends of $150,000 and $400,000, respectively, in 20X5. Required: a. Prepare the journal entries recorded on Poom's books during 20X5 to reflect its ownership of Satellite. b. Compute the income assigned to the noncontrolling interests in the 20X5 consolidated income statement. c. Compute consolidated net income and income to the controlling interest for 20X5. d. Compute the amount assigned to the noncontrolling interest in the consolidated balance sheet prepared as of December 31, 20X5. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare the journal entries recorded on Poom's books during 20X5 to reflect its ownership of Satellite. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Event General Journal A 1 Cash Investment in Satellite Industries B 2 Investment in Satellite Industries Income from Satellite Industries Required A Required B > Debit 112,500 Credit 112,500 142,500 142,500