On January 1, 2013, P Corporation Sold Equipment with a 3-Year

Multiple Choice

On January 1, 2013, P Corporation sold equipment with a 3-year remaining life and a book value of $40,000 to its 70% owned subsidiary for a price of $46,000.In the consolidated workpapers for the year ended December 31, 2014, an elimination entry for this transaction will include a:

A) debit to Equipment for $6,000.
B) debit to Gain on Sale of Equipment for $6,000.
C) credit to Depreciation Expense for $6,000.
D) debit to Accumulated Depreciation for $4,000.