Forest Corporation purchased 70 percent of the voting common stock of Part Company on January \(1,20 \mathrm{X} 2\), for \(\$ 294,000\). At the time, Part Company reported common stock outstanding of \(\$ 150,000\) and retained earnings of \(\$ 220,000\). The excess paid over underlying book value is being amortized over a 10 -year period by Forest. Forest Corporation reported income, exclusive of its income from Part Company, of \(\$ 83,000\) and paid dividends of \(\$ 40,000\) during 20X4. Part Company reported net income of \(\$ 30,000\) and paid dividends of \(\$ 8,000\) during \(20 \times 4\).

\section*{Required}

a. Compute consolidated net income for 20X4 assuming that Part Company sold land it had purchased for \(\$ 21,000\) to Forest Corporation for \(\$ 29,000\) on January 31, 20X4.

b. Compute consolidated net income for \(20 \mathrm{X} 4\) assuming that Forest Corporation sold land it had purchased for \(\$ 21,000\) to Part Company for \(\$ 29,000\) on January 31, 20X4.