In January 2008, S Company, an 80% Owned Subsidiary of P

Multiple Choice

In January 2008, S Company, an 80% owned subsidiary of P Company, sold equipment to P Company for $990,000.S Company's original cost for this equipment was $1,000,000 and had accumulated depreciation of $100,000.P Company continued to depreciate the equipment over its 9 year remaining life using the straight-line method.This equipment was sold to a third party on January 1, 2014 for $720,000.What amount of gain should P Company record on its books in 2014?

A) $30,000.
B) $60,000.
C) $120,000.
D) $180,000.