Dalton Corp. owned 70% of the outstanding common stock of Shrugs Inc. On January 1, 2016, Dalton acquired a building with a ten-year life for $420,000. No salvage value was anticipated and the building was to be depreciated on the straight-line basis. On January 1, 2018, Dalton sold this building to Shrugs for $392,000. At that time, the building had a remaining life of eight years but still no expected salvage value. For consolidation purposes, what is the Excess Depreciation (ED entry) for this building for 2018?

Event	General Journal	Debit			Credit
A)	Accumulated Depreciation		7,000
	Depreciation expense					7,000
B)	Accumulated Depreciation		4,900
	Depreciation Expense					4,900
C)	Depreciation Expense		7,000
	Accumulated Depreciation					7,000
D)	Depreciation Expense		4,900
	Accumulated Depreciation					4,900
E)	Accumulated Depreciation		42,000
	Depreciation Expense					42,000

Multiple Choice

Option A.

Option B.

Option C.

Option D.

Option E.