On January 1, 2016, P Corporation Sold Equipment with a 3-Year

Multiple Choice

On January 1, 2016, P Corporation sold equipment with a 3-year remaining life and a book value of $100,000 to its 70% owned subsidiary for a price of $115,000. In the consolidated workpapers for the year ended December 31, 2017, an elimination entry for this transaction will include a:

A) debit to Equipment for $15,000.
B) debit to Gain on Sale of Equipment for $15,000.
C) credit to Depreciation Expense for $15,000.
D) debit to Accumulated Depreciation for $10,000.