Package Corporation acquired $90$ percent ownership of Sack Grain Company on January $1,20$X$4,$ for $$120,600$ when the fair value of Sack's net assets was $$15\mathrm{.}000$ higher than its $$119\mathrm{.}000$ book value. The increase in value was attributed to amortizable assets with a remaining life of $10$ years. At that date, the fair value of the noncontrolling interest was equal to $$13,400.$

During $20$X$4,$ Sack sold land to Package at a $$7,000$ profit. Sack Grain reported net income of $$19,000$ and paid dividends of $$4,100$ in $204.$ Package reported income, exclusive of its income from Sack Grain, of $$40,000$ and paid dividends of $$15,100$ in $204.$

Required:

a$.$ Compute the amount of income assigned to the controlling interest in the consolidated income statement for $204.$

Controlling interest

b$.$ By what amount will the $204$ income assigned to the controlling interest increase or decrease if the sale of land had been from Package to Sack Grain, the gain on the sale of land had been included in Package's $$40,000$ income, and the $$19,000$ was income from operations of Sack Grain?

Reported income will

by