Lander Corporation purchased 75 percent of the voting common shares of Toll Corporation for \(\$ 350,000\) on January 1,20X4, when Toll reported common stock outstanding of \(\$ 150,000\) and retained earnings of \(\$ 270,000\). The purchase differential is amortized over 10 years. On December \(31,20 \times 4\), Toll sold a building to Lander and recorded a gain of \(\$ 20,000\). Income assigned to the noncontrolling shareholders in the \(20 \mathrm{X} 4\) consolidated income statement was \(\$ 17,500\).

\section*{Required}

a. Compute the amount of net income reported by Toll Corporation for 20X4.

b. Compute the amount reported as consolidated net income if Lander Corporation reported operating income of \(\$ 234,000\) for \(20 \mathrm{X} 4\).