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On January 1 , 2 0 2 1 , Ackerman sold equipment to Brannigan ( a wholly owned subsidiary ) for $ 2 9 0
On January Ackerman sold equipment to Brannigan a wholly owned subsidiary for $ in cash. The equipment had
originally cost $ but had a book value of only $ when transferred. On that date, the equipment had a fiveyear
remaining life. Depreciation expense is computed using the straightline method.
Ackerman reported $ in net income in not including any investment income while Brannigan reported $
Ackerman attributed any excess acquisitiondate fair value to Brannigan's unpatented technology, which was amortized at a rate of
$ per year.
a What is consolidated net income for
b What is the parent's share of consolidated net income for if Ackerman owns only percent of Brannigan?
c What is the parent's share of consolidated net income for if Ackerman owns only percent of Brannigan and the equipment
transfer was upstream?
d What is the consolidated net income for if Ackerman reports $does not include investment income and Brannigan
$ in income? Assume that Brannigan is a wholly owned subsidiary and the equipment transfer was downstream.
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