A parent company purchased an 80% interest in a subsidiary on January 1, 20X1, at a price high enough to result in goodwill. Included in the assets of the subsidiary are inventory with a book value of $50,000 and a fair value of $60,000 and equipment with a book value of

$100,000 and a fair value of $150,000. The equipment has a 5-year remaining life. What impact would the inventory and equipment, acquired in the purchase, have on consolidated net income in 20X1 and 20X2?

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