Pease Corporation Owns 100% of Sade Corporation Common Stock $\quad$

Multiple Choice

Pease Corporation owns 100% of Sade Corporation common stock.On January 2, 2016, Pease sold machinery with a carrying amount of $30,000 to Sade for $50,000.Sade is depreciating the acquired machinery over a 5-year life using the straight-line method.The related net adjustments to compute the 2016 and 2017 consolidated income before income tax would be an increase (decrease) of ?
$\quad$$\quad$ 2016 $\quad$ 2017

A) ?$(16,000) $\quad$ $4,000
B) ?$(16,000) $\quad$ $0
C) ?$(20,000) $\quad$ $4,000
D) ?$(20,000) $\quad$ $0