Khan Inc. has owned $80$ percent of Summerside Limited for many years. On January $1,$ Year $6,$ Khan paid Summerside $$578,000$ to

acquire equipment that Summerside had purchased on January $1,$ Year $4,$ for $$632,000.$ The equipment is expected to have no scrap

value and is depreciated over a $15-$year useful life. Neither company owns any other equipment.

Khan reported net income of $$82,000$ for Year $8$ and paid dividends of $$52,000.$ Summerside reported net income of $$72,000$ and

paid dividends of $$31,000$ in Year $8.$

Required:

$($a$)$ What amounts should be reported on Khan's separate entity financial statements for Year $8$ for equipment, accumulated

depreciation, depreciation expense and gain on sale of equipment? $($Leave no cells blank $-$ be certain to enter $"$O$"$ wherever

required. Round your final answer to nearest whole dollar. Omit $ sign in your response.$)$

$($b$)$ Compute the amount reported as consolidated net income for Year $8.$ Ignore income taxes. $($Do not round your intermediate

calculations. Round your final answer to nearest whole dollar. Omit $ sign in your response.$)$

Consolidated net income

$($c$)$ This part of the question is not part of your Connect assignment.

$($d$)$ What amounts should be reported on the Year $8$ consolidated statements for equipment, accumulated depreciation and

depreciation expense? $($Do not round your intermediate calculations. Round your final answer to nearest whole dollar. Omit $ sign

in your response.$)$Khan Inc. has owned $80$ percent of Summerside Limited for many years. On January $1,$ Year $6,$ Khan paid Summerside $$578,000$ to acquire equipment that Summerside had purchased on January $1,$ Year $4,$ for $$632,000.$ The equipment is expected to have no scrap value and is depreciated over a $15-$year useful life. Neither company owns any other equipment.

Khan reported net income of $$82,000$ for Year $8$ and paid dividends of $$52,000.$ Summerside reported net income of $$72,000$ and paid dividends of $$31,000$ in Year $8.$

Required:

$($a$)$ What amounts should be reported on Khan's separate entity financial statements for Year $8$ for equipment, accumulated depreciation, depreciation expense and gain on sale of equipment? $($b$)$ Compute the amount reported as consolidated net income for Year $8.$ Ignore income taxes.$($d$)$ What amounts should be reported on the Year $8$ consolidated statements for equipment, accumulated depreciation and depreciation expense