Parent Company holds 90 percent of the voting common shares of Sunway Company. On December 31, 20X8. Parent Company recorded a loss of \(\$ 16,000\) on the sale of equipment to Sunway Company. At the time of the sale, the estimated remaining economic life of the equipment was eight years.

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a. Will consolidated net income be increased or decreased when eliminating entries associated with the sale of equipment are made at December 31, 20X8? By what amount?

b. Will consolidated net income be increased or decreased when eliminating entries associated with the sale of equipment are made at December 31, 20X9? By what amount?