On January 1, 2018, Ackerman sold equipment to Brannigan (a wholly owned

subsidiary) for $220,000 in cash. The equipment had originally cost $198,000 but had

a book value of only $121,000 when transferred. On that date, the equipment had a

five-year remaining life. Depreciation expense is computed using the straight-line

method.

Ackerman reported $320,000 in net income in 2018 (not including any investment

income) while Brannigan reported $104,600. Ackerman attributed any excess

acquisition-date fair value to Brannigan's unpatented technology, which was amortized

at a rate of $4,200 per year.

a. What is consolidated net income for 2018?

b. What is the parent's share of consolidated net income for 2018 if Ackerman owns

only 90 percent of Brannigan?

c. What is the parent's share of consolidated net income for 2018 if Ackerman owns

only 90 percent of Brannigan and the equipment transfer was upstream?

d. What is the consolidated net income for 2019 if Ackerman reports $340,000 (does

not include investment income) and Brannigan $114,800 in income? Assume that

Brannigan is a wholly owned subsidiary and the equipment transfer was

downstream.