On January 1, 2018, Ackerman sold equipment to Brannigan (a wholly
owned subsidiary) for $340,000 in cash. The equipment had
originally cost $306,000 but had a book value of only $187,000 when
transferred. On that date, the equipment had a five-year remaining
life. Depreciation expense is computed using the straight-line
method. Ackerman reported $440,000 in net income in 2018 (not
including any investment income) while Brannigan reported $144,200.
Ackerman attributed any excess acquisition-date fair value to
Brannigan's unpatented technology, which was amortized at a rate of
$5,400 per year. What is consolidated net income for 2018? What is
the parent's share of consolidated net income for 2018 if Ackerman
owns only 90 percent of Brannigan? What is the parent's share of
consolidated net income for 2018 if Ackerman owns only 90 percent
of Brannigan and the equipment transfer was upstream? What is the
consolidated net income for 2019 if Ackerman reports $460,000 (does
not include investment income) and Brannigan $155,600 in income?
Assume that Brannigan is a wholly owned subsidiary and the
equipment transfer was downstream.