On January 1, 2016, Poe Corp

Multiple Choice

On January 1, 2016, Poe Corp.sold a machine for $900,000 to Saxe Corp., its wholly-owned subsidiary.Poe paid $1,100,000 for this machine.On the sale date, accumulated depreciation was $250,000.Poe estimated a $100,000 salvage value and depreciated the machine on the straight-line method over 20 years, a policy that Saxe continued.In Poe's December 31, 2016, consolidated balance sheet, this machine should be included in cost and accumulated depreciation as ​
Cost Accumulated Depreciation

A) ​$1,100,000 $300,000
B) ​$1,100,000 $290,000
C) ​$ 900,000 $ 40,000
D) ​$ 850,000 $ 42,500