Singh Ltd Is a Wholly Owned Subsidiary of Ross Co $$\begin{array} { | c | c | } \hline \text { DR Retained earnings } & 37,500 \\\hline \text { CR Machine } & 87,500 \\\hline\end{array}$$

Multiple Choice

Singh Ltd. is a wholly owned subsidiary of Ross Co. At the beginning of 20X4, Ross acquired a machine for $350,000 and sold it to Singh for $437,500. The machine will be depreciated over five years using the straight-line method with no residual value.
-Seven years after Singh bought the machine from Ross, the machine is still in use. In preparing its consolidated financial statements, what entry should Ross make?

A) $$\begin{array} { | c | c | } \hline \text { DR Retained earnings } & 37,500 \\\hline \text { CR Machine } & 87,500 \\\hline\end{array}$$
B) $$\begin{array} { | c | c | } \hline \text { DR Accumulated depreciation-machine } & 37,500 \\\hline \text { CR Machine } & 87,500 \\\hline\end{array}$$
C) $$\begin{array} { | l| c | } \hline \text { DR Retained earnings } & 37,500 \\\hline \text { CR Accumulated depreciation } & 87,500 \\\hline\end{array}$$
D) No entry is required at this time.