On 1/1/16 Peck Sells a Machine with a $20,000 Book

Multiple Choice

On 1/1/16 Peck sells a machine with a $20,000 book value to its subsidiary Shea for $30,000.Shea intends to use the machine for 4 years, which was the remaining life that Peck had at the time of the sale.Neither company had assigned a salvage value to the machine.On 12/31/17 Shea sells the machine to an outside party for $14,000.What amount of gain or (loss) for the sale of assets is reported on the consolidated financial statements in 2017?

A) ​loss of $6,000
B) ​loss of $1,000
C) ​gain of $4,000
D) ​gain of $14,000