Problem 3 Lient Progress Company acquired 70% of Stall Corporation on 1/2020. Fair values of Stall's assets and liabilities approximated book values on that date. Progress uses the initial value method to account for its investment in Stall. On 1/2021, Progress bought equipment from Stall for $60,000 that had originally cost Stall $120,000 and had \$ 80,000 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 2022 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 2022 ? (this is the amount you will need for the "TA entry at 1/2022) 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. Progress's 2022 net income, without including any investment income, was \$ 320,000 and Stall reported net income of S 105,000 in 2022. 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 2022 ? (Consider whether the equipment sale had been upstream or downstream.)