Hardcore Mining Company acquired 88 percent of the common stock of Mountain Trucking Company on January 1, 20X2, at a cost of $30 per share. On December 31, 20X7, when the book value of Mountain Trucking stock was $70 per share, Hardcore sold one-quarter of its investment in Mountain Trucking to Basic Manufacturing Company for $90 per share.
What effect will the sale have on the 20X7 consolidated financial statements of Hardcore Mining if,
(a) Basic Manufacturing is an unrelated company or
(b) Hardcore Mining holds 60 percent of Basic's voting shares?