$On$ January $1,2022$ Squash Company recorded $a$ $$40,000$ profit $on$ the upstream sale $of$ some equipment that

had a remaining four$-$year life under the straight$-$line depreciation method. The effect $of$ this transaction $on$ the

amount recorded $in2022by$ the parent company Pumpkin $as$ its investment income $in$ the Squash was

Multiple Choice

$an$ increase $of$ $$30\mathrm{.}000if$ the Squash was wholly owned.

a decrease $of$ $$36,000if$ the Squash was $90\%$ owned.

a decrease $of$ $$24,000if$ the Squash was $80\%$ owned.

$an$ increase $of$ $$40,000if$ the Squash was wholly owned.