Separate income statements of Quail Corporation. and its 00%owned subsidiary, Savannah Corporation, for 2005 are as follows: Quail Savannah Sales Revenue $ 000,000 $ 300,000 Gain on equipment 35,000 Gain on land 20,000 Cost of sales [ 400,000 } E 150,000 } Other expenses 1 265,000 1 { 60,000 1 Separate incomes 5 120.000 $ 100,000 Additional information: 1. Quail acquired its 80% interest in Savannah Corporation when the book values were equal to the fair values. 2. The gain on equipment relates to equipment with a book value of $05,000 and a Tyear remaining useful life that Quail sold to Savannah for $120,000 on. January' 2, 2005. The straightline depreciation method was used. 3. In 2005, Savannah sold land to an outside entity for $00,000. The land was acquired from Quail in 2003 for $60,000. The original cost of the land to Quail was $35,000