Peter Company acquired 90 % of Steven Corporation on 1/2018. Fair values of Steven's assets and liabilities approximated book values on that date. Peter uses the initial value method to account for its investment in Steven. On 1/2019, Peter bought equipment from Steven for $60,000 that had originally cost Steven $120,000 and had $ 110,000 of Accumulated depreciation at the time. The equipment had a five-year remaining life and was being depreciated using the straight line method. You are preparing the worksheet for the 2020 fiscal year. a. Was this equipment sale upstream or downstream? b. How much unrealized net gain from the equipment transfer remains at the beginning of 2020? (this is the amount you will need for the *TA entry at 1/2020.) c. Which company's Retained earnings account will be adjusted in the *TA entry in part a? (Which company was the "initiator" of the transaction?) d. How much excess depreciation will there be in each of the first five years after the transfer? e. Peter's 2020 net income, without including any investment income, was $ 440,000 and Steven reported net income of $ 137,000 in 2020. What consolidated income will be reported before removing the noncontrolling interest's share of the subsidiary's net income? (This includes the effect of the ED entry.) f. What will the noncontrolling interest's share of the subsidiary's net income be for 2020? (Consider whether the equipment sale had been upstream or downstream.) Peter Company acquired 90 % of Steven Corporation on 1/2018. Fair values of Steven's assets and liabilities approximated book values on that date. Peter uses the initial value method to account for its investment in Steven. On 1/2019, Peter bought equipment from Steven for $60,000 that had originally cost Steven $120,000 and had $ 110,000 of Accumulated depreciation at the time. The equipment had a five-year remaining life and was being depreciated using the straight line method. You are preparing the worksheet for the 2020 fiscal year. a. Was this equipment sale upstream or downstream? b. How much unrealized net gain from the equipment transfer remains at the beginning of 2020? (this is the amount you will need for the *TA entry at 1/2020.) c. Which company's Retained earnings account will be adjusted in the *TA entry in part a? (Which company was the "initiator" of the transaction?) d. How much excess depreciation will there be in each of the first five years after the transfer? e. Peter's 2020 net income, without including any investment income, was $ 440,000 and Steven reported net income of $ 137,000 in 2020. What consolidated income will be reported before removing the noncontrolling interest's share of the subsidiary's net income? (This includes the effect of the ED entry.) f. What will the noncontrolling interest's share of the subsidiary's net income be for 2020? (Consider whether the equipment sale had been upstream or downstream.)