On January 1, 2020, Honor Corp. sold equipment to AP Inc. for $50,000 in cash. The equipment originally cost $80,000 but had a book value of only $40,000 when transferred. On that date, the equipment had a five-year remaining life. Both companies compute depreciation expense using the straight-line method.

Honor reported $200,000 of net income in 2020 (not including any investment income) while AP reported $70,000. Assume that the annual excess fair value amortization related to the original investment is $1,000. Honor owned 90% of AP.

1) For 2020, what is consolidated net income to the non-controlling and controlling interests?

2) Prepare 2020 consolidated entries related to the transfer of equipment.