Pease Corporation Owns 100% of Sade Corporation Common Stock

Pease Corporation owns 100% of Sade Corporation common stock. On January 2, 20X6, Pease sold machinery with a carrying amount of $30,000 to Sade for $50,000. Sade is depreciating the acquired machinery over a 5-year life using the straight-line method. The related net adjustments to compute the 20X6 and 20X7 consolidated income before income tax would be an increase (decrease) of