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On January 1, Year 1, Charlie Inc., a 60% owned subsidiary of Tyson Co., sold equipment to Tyson. Assume that this intra-entity sale of asset
On January 1, Year 1, Charlie Inc., a 60% owned subsidiary of Tyson Co., sold equipment to Tyson. Assume that this intra-entity sale of asset resulted in a gain of and annual excess depreciation expense of per year. Further assume that the total annual excess amortization resulting from the acquisition was . Charlie reported net income of in Year 1 and in Year 2, respectively. Equity method is used. What is Tyson's share in Charlie's net income for Year 1? What is Tyson's share in Charlie's net income for Year 2? If it was Tyson who sold the equipment to Charlie and other things being equal, what is Tyson's share in Charlie's net income for Year 1? Show your work (required) briefly for this requirement in the box right after the
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