Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Inc. On January 1, 2022, Thomson acquired a building with a 10-year life for $460,000. Thomson depreciated the building on the straight-line basis assuming no salvage value. On January 1, 2024, Thomson sold this building to Stayer for $430,400. At that time, the building had a remaining life of 8 years but still no expected salvage value. In preparing financial statements for 2024, how does this transfer affect the computation of consolidated net income?
a. Net income is reduced by $62,400.
b. Net income is reduced by $59,440.
c. Net income is reduced by $70,200.
d. Net income is reduced by $54,600.