18. Parent buys building (useful life 10 years) for $3,000,000 on January 1, 2012. On that same date, parent sells building to 80% owned subsidiary for $4,000,000. Subsidiary will use the same 10 year depreciable life.

a. How much depreciation expense will the subsidiary record in 2012?

b. How much is consolidated depreciation expense in 2012?

c. How much is the worksheet entry to eliminate excess depreciation in 2012?