Pentamedia owns 90 percent of Sesa. At the start of 2016, Sesa sold buildings carried at \($4,000,000\), net, to Pentamedia for \($6,000,000\). The buildings had a remaining life of 10 years and straight-line depreciation is used. Pentamedia uses the complete equity method to record its investment in Sesa. Pentamedia still owns the buildings. How are Pentamedia’s 2017 equity in net income of Sesa and 2017 consolidated income to the noncontrolling interest affected by the intercompany sale of buildings?

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Equity in net income $200,000 increase b. $360,000 increase $400,000 increase d. $180,000 increase Noncontrolling interest in net income $0 $40,000 increase $0 $20,000 increase