Jackie Co., a 90% owned subsidiary of Nick Inc., sold land to Nick on May 1,...

 

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Jackie Co., a 90% owned subsidiary of Nick Inc., sold land to Nick on May 1, 2024, for $80,000. The land originally cost Jackie $85,000. Jackie reported net income of $200,000, $180,000, and $220,000 for 2024, 2025, and 2026, respectively. Nick sold the land purchased from Jackie for $92,000 in 2026. Both companies use the equity method of accounting. Assuming there are no excess amortizations or other intra-entity transactions, compute income from Jackie Co. reported on Nick's books for 2025. Jackie Co., a 90% owned subsidiary of Nick Inc., sold land to Nick on May 1, 2024, for $80,000. The land originally cost Jackie $85,000. Jackie reported net income of $200,000, $180,000, and $220,000 for 2024, 2025, and 2026, respectively. Nick sold the land purchased from Jackie for $92,000 in 2026. Both companies use the equity method of accounting. Assuming there are no excess amortizations or other intra-entity transactions, compute income from Jackie Co. reported on Nick's books for 2025.

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