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A parent company acquires all of a subsidiarys voting stock at the beginning of 2015. At the date of acquisition, the subsidiarys equipment had a
A parent company acquires all of a subsidiarys voting stock at the beginning of 2015. At the date of acquisition, the subsidiarys equipment had a book value of $40 million and a fair value of $25 million. The equipment had a 10-year remaining life, straight-line. Consolidation eliminating entry (R), on the consolidation working paper for 2018, reduces the net equipment account by what amount?
| A. | $15.0 million | |
| B. | $10.5 million | |
| C. | $17.5 million | |
| D. | $ 9.0 million |
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