8. [Equity method: tax rate assumption] HP has one affiliate, Atwood [ATW]. which is 24% owned and for which it uses the equity method. In the period 1998 2000. IP did not change its investment in ATW and did not receive any dividends from ATW. Equity income from ATW is reported net of income tax.

a. Calculate Atwood's pretax income for 1999 and 2000. (Hint: Consider the change in HP's carrying amount.)