Thomson Corporation owns $70$ percent of the outstanding stock of Stayer, Incorporated. On January $1,2022,$ Thomson acquired a building with a $10-$year life for $$488,000.$ Thomson depreciated the building on the straight$-$line basis assuming no salvage value. On January $1,2024,$ Thomson sold this building to Stayer for $$431,200.$ At that time, the building had a remaining life of eight years but still no expected salvage value. In preparing financial statements for $2024,$ how does this transfer affect the computation of consolidated net income?

Multiple Choice

Net income is reduced by $$45,900.$

Net income is reduced by $$40,800.$

Net income is reduced by $$35,700.$

Net income is reduced by $$35,120.$