63. On January 1, 2020, Coldspring Corp. paid $770,000 to acquire Whitt Co. Coldspring used the equity method to account for the investment. The following information is available for the assets, liabilities, and stockholders' equity accounts of Whitt:

	Book Value	Fair Value
Current assets	$95,000	$95,000
Land	95,000	120,000
Building (twenty year life)	255,000	310,000
Equipment (five year life)	185,000	190,000
Current liabilities	40,000	40,000
Long-term liabilities	65,000	65,000
Common stock	140,000
Additional paid-in capital	300,000
Retained earnings	210,000

Whitt earned net income for 2020 of $125,000 and paid dividends of $18,000 during the year. If Coldspring had income from its own operations, excluding any investment income, of $425,500 in 2020, what would be consolidated net income?

Select one:

A. $543,000

B. $550,500

C. $528,750

D. $546,750

89.

On April 1, 2020, Republic Company sold equipment to its wholly owned subsidiary, Barre Corporation, for $40,000. At the time of the transfer, the asset had an original cost (to Republic) of $60,000 and accumulated depreciation of $25,000. The equipment has a five year estimated remaining life. Barre reported net income of $250,000, $270,000 and $310,000 in 2020, 2021, and 2022, respectively. Republic received dividends from Barre of $90,000, $105,000 and $120,000 for 2020, 2021, and 2022, respectively. What was the amount of the credit to depreciation expense on the 2020 consolidation worksheet?

Select one:

A. $750

B. $1,600

C. $1,000

D. $-0-