In preparing its consolidated financial statements at December 31, 20X7, the following consolidation entries were included in the consolidation worksheet of Master Corporation:

Consolidation Worksheet Entries	Debit	Credit
Buildings	245,000
Gain on Sale of Building	49,000
Accumulated Depreciation		294,000
Consolidation Worksheet Entries	Debit	Credit
Accumulated Depreciation	3,500
Depreciation Expense		3,500

Master owns 60 percent of Rakel Corporations voting common stock. On January 1, 20X7, Rakel sold Master a building it had purchased for $1,030,000 on January 1, 20X1, and depreciated on a 20-year straight-line basis. Master recorded depreciation for 20X7 using straight-line depreciation and the same useful life and residual value as Rakel.

Required:

a. What amount did Master pay Rakel for the building?

b.

What amount of accumulated depreciation did Rakel report at January 1, 20X7, prior to the sale?

c.

What annual depreciation expense did Rakel record prior to the sale?

d.

What expected residual value did Rakel use in computing its annual depreciation expense?

e.

What amount of depreciation expense did Master record in 20X7?

f.

If Rakel reported net income of $75,000 for 20X7, what amount of income will be assigned to the noncontrolling interest in the consolidated income statement for 20X7?

g.

If Rakel reported net income of $56,000 for 20X8, what amount of income will be assigned to the noncontrolling interest in the consolidated income statement for 20X8?