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 parent's current year equity in net income and consolidated income to the noncontrolling interest affected by this intercompany transaction?

Equity in net income

.

1, 200

increase

.

1, 200

decrease

.

2, 000

increase

.

no effect

Noncontrolling interest in net income

800

increase

800

decrease

no effect

In the current year, a 60%-owned subsidiary sells land with a

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