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ABC sold depreciable assets to XYZ on January 1, 2019 at an after-tax gain of $10,000. On January 1, 2020, XYZ sold depreciable assets to

  1. ABC sold depreciable assets to XYZ on January 1, 2019 at an after-tax gain of $10,000. On January 1, 2020, XYZ sold depreciable assets to ABC at an after-tax gain of $20,000. Both assets are being depreciated over 10 years. The tax rate for both companies is zero. How much intercompany (after-tax) profit was realized during 2020 from Rin's 2019 sale of assets to XYZ? A. $9,000 B. $1,000 C. $2,000 D. $900

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