QUESTION 13 On January 1, 2020, Parent Company, an 80% owned subsidiary of Sub. Inc. transferred equipment with a 10 year life (slx of which remain with no salvage value) to Sub Inc. in exchange for $60,000 cash. At the date of transfer, Parent's records carried the equipment at a cost of $120,000 less accumulated depreciation of 548,000. Straight-line depreciation is used. Parent Co. reported net income of $28,000 and $32,000 for 2020 and 2021, respectively. All net income effects of the intra-entity transfer are attributed to the seller for consolidation purposes. What is the net effect on consolidated net income in 2020 due to the equipment transfer? Decrease $12,000. Decrease $10,000. Increase $10,000 Increase $14,000 None of the above