Garvey Company sells a machine to its 80 percent subsidiary, Marks Enterprises for $80,000 on December 31, 2015. At that date, the machine and accumulated depreciation accounts on Garveys financial records are $180,000 and $60,000, respectively. The machine has a remaining life of six years for Garvey and is assigned a life of ten years when acquired by Marks.

Required:

a.Record the worksheet elimination for the intercompany transaction assuming that the consolidation occurs on December 31, 2016.

b.What is the income to noncontrolling interest in 2016 if Marks has reported net income of $193,000?