United Grain Company is 90 percent owned by Petime Corporation. Petime Corporation paid \(\$ 9.000\) in excess of underlying book value to purchase the shares of United Grain Company and is amortizing the balance over a 10 -year period. During 20X4. United Grain Company sold land to 1 Petime Corporation at a profit of \(\$ 7,000\). United Grain reported net income of \(\$ 19,000\) and paid dividends of \(\$ 4,000\) in \(20 \mathrm{X} 4\). Petime Corporation reported income, exclusive of its income from United Grain, of \(\$ 34,000\) and paid dividends of \(\$ 15,000\) in \(20 \mathrm{X} 4\).

\section*{Required}

a. Compute consolidated net income for \(20 \mathrm{X} 4\).

b. By what amount would consolidated net income for \(20 \mathrm{X} 4\) increase or decrease if the sale of land had been from Petime Corporation to United Grain Company, and the gain on the sale of land was included in Petime's income of \(\$ 34,000\) ?