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On June 30,2022, Past Company (Past) sold some land to its subsidiary, Sloan Ltd.(Sloan), for...

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Accounting

On June 30,2022, Past Company (Past) sold some land to its subsidiary, Sloan Ltd.(Sloan), for $380,000. The land had cost Past $200,000 when it was acquired three years previously.
The transaction was subject to income tax at a rate of 20%. On April 1,2024, Sloan sold the land to an outside party for $475,000.
This transaction was also subject to income tax at a 20% rate.
Past owns 75% of the outstanding shares of Sloan and accounts for its investment using the cost method.
What effect will the adjustment for the realization of the intercompany gain (in the preparation of the consolidated income statement) have on the noncontrolling interest in income for 2024?
Multiple Choice
It will have no effect on the non-controlling interest in income.
It will decrease the non-controlling interest in income by $36,000.
It will increase the non-controlling interest in income by $36,000.
It will increase the non-controlling interest in income by $45,000.

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