On January 1, 2020, Doone Corporation acquired 70 percent of the outstanding voting stock of Rockne Company for $630,000 consideration. At the acquisition date, the fair value of the 30 percent noncontrolling interest was $270,000, and Rockne's assets and liabilities had a collective net fair value of $900,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $340,000 in 2021. Since being acquired, Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $400,000 in 2020 and $500,000 in 2021. Approximately 40 percent of the inventory purchased during any one year is not used until the following year. Required:
a. What is the noncontrolling interest's share of Rockne's 2018 income?
b. Prepare Doone's 2018 consolidation entries required by the intra-entity inventory transfers.