On January 2, 2014, Pal Corporation sold warehouse equipment to SimCo, a wholly-owned subsidiary. The equipment had an original cost of $130,000 and a net book value of $100,000 when it was sold to SimCo for $150,000. Both companies agreed that the equipment had a five-year remaining life and compute depreciation on the straight-line method. The equipment has no salvage value. Pal reported $470,000 in net income in 2014 (prior to reporting any income from SimCo), and SimCo reported $160,000 in net income. Required: 1. Calculate consolidated net income for 2014. 2. Determine the controlling share of net income for the year if Pal only owned 75% of SimCo. 3. Determine the controlling share of net income for the year if Pal only owned 75% of SimCo AND the equipment transfer was upstream.