What adjustment is needed related to this transfer

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Question : Downstream Sale Problem

Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1, 2016, Thomson acquired a building with a 10-year life for $424,000. Thomson depreciated the building on the straight-line basis assuming no salvage value. On January 1, 2018, Thomson sold this building to Stayer for $373,600. At that time, the building had a remaining life of eight years but still no expected salvage value. In reporting consolidated net income for 2018, what adjustment is needed related to this transfer?

Reference no: EM132406605

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