On December 31, 2015, Corella sold equipment with a three-year remaining useful life and a book value of $21,000 to its 70%-owned subsidiary Hallow for a price of $27,000. Corella bought the equipment four years ago for $49,000.
What was the intercompany sale impact on the consolidated financial statements for the year ended December 31, 2015?
		Corellas Net Income	Corellas Income from Hallow
	a.	No effect.	No effect.
	b.	No effect.	Decreased.
	c.	Decreased.	No effect.
	d.	Increased.	Decreased.
What was the intercompany sale impact on the consolidated financial statements for the year ended December 31, 2015?
		Consolidated Net Income	Consolidated Net Assets
	a.	No effect.	No effect.
	b.	No effect.	Increased.
	c.	Decreased.	Decreased.
	d.	Decreased.	No effect.