Use the Following Information to Answer the Question(s)below

Use the following information to answer the question(s) below.
On December 31,2014,Pinne Corporation sold equipment with a three-year remaining useful life and a book value of $21,000 to its 70%-owned subsidiary,Sull Company,for a price of $27,000.Pinne bought the equipment four years ago for $49,000.The salvage value is zero.Straight-line depreciation is used by both companies.
-After eliminating/adjusting entries are prepared,what was the intercompany sale impact on the consolidated financial statements for the year ended December 31,2014? $\begin{array}{ll}\text { A) Consolidated Net Income } & \text { Consolidated Net Assets } \\ \text { No effect } & \text { Noeffect } \\ \text { B) Consolidated Net Income } & \text { Consolidated Net Asset } \\ \text { No effect } & \text { Increased } \\ \text {C) Consolidated Net Income } & \text { Consolidated Net Asset } \\ \text { Decreased } & \text { Decreased } \\ \text { D) Consolidated Net Income } & \text { Consolidated Net Asset } \\ \text { Decreased } & \text { Noeffect }\end{array}$