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  3. thomson corporation owns 70 percent of the outstan

Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1,...

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Accounting

Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1, 2013, Thomson acquired a building with a 10-year life for $458,000. Thomson depreciated the building on the straight-line basis assuming no salvage value. On January 1, 2015, Thomson sold this building to Stayer for $412,000. At that time, the building had a remaining life of eight years but still no expected salvage value. In preparing financial statements for 2015, how does this transfer affect the computation of consolidated net income?

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