Plenny Corporation sold equipment to its 90%-owned subsidiary, Sourdough Corp., on January 1, 2014. Plenny sold the equipment for $100,000 when its book value was $75,000 and it had a 5-year remaining useful life with no expected salvage value. Straight-line depreciation is used by both companies. Separate balance sheets for Plenny and Sourdough included the following equipment and accumulated depreciation amounts
Plenny Corporation sold equipment to its 90%-owned subsidiary, Sourdough Corp., on January 1, 2014. Plenny sold the equipment for $100,000 when its book value was $75,000 and it had a 5-year remaining useful life with no expected salvage value. Straight-line
Plenny Sourdough
Equipment $850,000 $300,000
Less: Accumulated depreciation (200,000) (60,000)
Equipment-net $650,000 $240,000
Consolidated amounts for equipment and accumulated depreciation at December 31, 2014 were respectively
| A. |
$1,125,000 and $260,000. |
|
| B. |
$1,125,000 and $255,000. |
|
| C. |
$1,150,000 and $255,000. |
|
| D. |
$1,150,000 and $260,000. |
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