19/ Parent Corporation sold equipment to its 90%-owned subsidiary, Sourdough Corp., on January 1, 20X2. Parent sold the equipment for $100,000 when its book value was $75,000 and it had a 5-year remaining useful life with no expected salvage value. Straight-line depreciation is used by both companies. Separate balance sheets for Parent and Sourdough included the following equipment and accumulated depreciation amounts on December 31, 20X2:

Parent Sourdough

Equipment $850,000 $300,000

Less: Accumulated depreciation (200,000) (60,000)

Equipment-net $650,000 $240,000

Consolidated amounts for equipment and accumulated depreciation at December 31, 20X2 were respectively:

Select one:

a.$1,125,000 and $255,000

b.$1,125,000 and $260,000

c.$1,150,000 and $255,000

d-$1,150,000 and $260,000

20/ Assume there are routine inventory sales between parent companies and subsidiaries. When preparing the consolidated financial statements, which of the following line items is indifferent to the sales being either upstream or downstream?

Select one:

a.Consolidated retained earnings

b.Consolidated gross profit

c.Noncontrolling interest share

d.Controlling interest share of consolidated net income