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A parent owns 100% of its subsidiary. At the beginning of 2019, the subsidiary sells equipment carried on its books at $40,000 to its parent

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A parent owns 100% of its subsidiary. At the beginning of 2019, the subsidiary sells equipment carried on its books at $40,000 to its parent for $50,000. At the time of sale, the equipment has a net book value of $20.000 and a 5-year remaining life. Both companies use the straight-line method of depreciation. At the end of 2019, the parent company still owns the equipment What is the effect on Depreciation Expense in the 2019 elimination entry? a. $6.000 increase b. $6,000 decrease c. $14,000 decrease d. $14,000 increase A Moving to another question will save this response.

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