E 6-2 Discuss effect of intercompany sale of building Khap Corporation acquired an 80 percent interest in Khun Corporation in 2014. On January 1, 2016, Khap sold a building with a five-year remaining useful life to Khun for $150,000 cash. The building’s book value was $100,000. Khun still owns the building at December 31, 2016.

REQuIRED 1. How and in what amount will the sale of the building affect Khap’s income from Khun and net income for 2016, and the balance of Khap’s Investment in Khun account on December 31, 2016?