15 Required information On January 1, 20X7, Server Company purchased a machine with an expected economic life of five years. On January 1, 20X9, Server sold the machine to Patron Corporation and recorded the following entry: Part 1 of 4 Cash Accumulated Depreciation Machine Gain on Sale of Equipment 45,000 28,000 70,000 3,000 Patron Corporation holds 75 percent of Server's voting shares. Server reported net income of $50,000, and Patron reported income from its own operations of $100,000 for 20X9. There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer. Based on the preceding information, in the preparation of the 20x9 consolidated income statement, depreciation expense will be: Multiple Choice Debited for $1,000 in the consolidating entries. Credited for $1,000 in the consolidating entries. Debited for $15,000 in the consolidating entries. Credited for $15,000 in the consolidating entries