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Akron holds 100 percent of the outstanding shares of Yelton. On January 1,2020 , Akron transferred equipment to Yelton for $240,000. The equipment had cost

image text in transcribed Akron holds 100 percent of the outstanding shares of Yelton. On January 1,2020 , Akron transferred equipment to Yelton for $240,000. The equipment had cost $400,000 originally but had a $180,000 book value and eight- year remaining life at the date of transfer. Depreciation expense is computed according to the straight- line method with no salvage value. What is the adjustment to the depreciation expense during preparation of 2020 consolidated financial statements? Increase of $7,500. Decrease of $7,500. Increase of $10,000. Decrease of $10,000. 2 points Use the same information in Question 8. The net adjustments to compute 2020 consolidated net income would be: Increase of $50,000. Decrease of $52,500. Increase of $52,500. Decrease of $50,000

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