Question: In the current year, a 6 0 % - owned subsidiary sells land with a book value of $ 1 0 , 0 0 0

In the current year, a 60%-owned subsidiary sells land with a book value of $10,000 to its parent for $8,000. The parent still holds the land at year-end. How are the parents current year equity in net income and consolidated income to the noncontrolling interest affected by this intercompany transaction?
Equity in net income Noncontrolling interest in net income
A. $1,200 increase $800 increase
B. $1,200 decrease$800 decrease
C. $2,000 increaseno effect
D. no effectno effect

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