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In preparing its consolidated financial statements at December 31, 20X7, the following consolidation entries were included in the consolidation worksheet of Powder Corporation:

Consolidation Worksheet Entries	Debit	Credit
Buildings	210,000
Gain on Sale of Building	42,000
Accumulated Depreciation		252,000

Consolidation Worksheet Entries	Debit	Credit
Accumulated Depreciation	3,000
Depreciation Expense		3,000

Powder owns 60 percent of Snow Corporations voting common stock. On January 1, 20X7, Snow sold Powder a building it had purchased for $905,000 on January 1, 20X1, and depreciated on a 20-year straight-line basis. Powder recorded depreciation for 20X7 using straight-line depreciation and the same useful life and residual value as Snow. Required: a. What amount did Powder pay Snow for the building?

b. What amount of accumulated depreciation did Snow report at January 1, 20X7, prior to the sale?

c. What annual depreciation expense did Snow record prior to the sale?

d. What expected residual value did Snow use in computing its annual depreciation expense?

e. What amount of depreciation expense did Powder record in 20X7?

f. If Snow reported net income of $77,000 for 20X7, what amount of income will be assigned to the noncontrolling interest in the consolidated income statement for 20X7?

g. If Snow reported net income of $59,000 for 20X8, what amount of income will be assigned to the noncontrolling interest in the consolidated income statement for 20X8?

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