CHS, a regional cooperative, allocates patronage to its local member cooperative, NEW Cooperative. The allocation to NEW in the current year is $30,000, of which 60% is cash and 40% is qualified deferred allocated equity. At the same time, CHS redeems past allocated equity to NEW cooperative in the amount of $30,000.

- How will NEW's and CHS's balance sheet change, if at all. Be sure to be specific about about what portions of its balance sheet are affected, and by what amount. Also what will NEW record on their income statement from the allocation and redemption?