On January 1, 20X7, Server Company purchased a machine with an expected economic life of five years. On January 1, 20X9, Server sold the machine to Patron Corporation and recorded the following entry:

Cash		45,000
Accumulated Depreciation		28,000
Machine					70,000
Gain on Sale of Equipment					3,000

Patron Corporation holds 75 percent of Server's voting shares. Server reported net income of $50,000, and Patron reported income from its own operations of $100,000 for 20X9. There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer.

Based on the preceding information, income assigned to the noncontrolling interest in the 20X9 consolidated income statement will be:

A) $12,000.

B) $14,000.

C) $12,500.

D) $48,000.

Answer: A

46) Based on the preceding information, consolidated net income for 20X9 will be:

A) $150,000.

B) $100,000.

C) $148,000.

D) $130,000.

Answer: C

Please explain how to get these answers!