Hardcore Mining Company acquired 88 percent of the common stock of Mountain Trucking Company on January 1.

Question:

Hardcore Mining Company acquired 88 percent of the common stock of Mountain Trucking Company on January 1. 20X2, at a cost of $\$ 30$ per share. On December 31, 20X7, when the book value of Mountain Trucking stock was $\$ 70$ per share. Hardcore sold one-quarter of its investment in Mountain Trucking to Basic Manufacturing Company for $\$ 90$ per share.

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What effect will the sale have on the $20 \times 7$ consolidated financial statements of Hardcore mining if

(a) Basic Manufacturing is an unrelated company: and

(b) Hardcore Mining holds 60 percent of the voting shares of Basic Manufacturing?

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