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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
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? Credit Event A) General Journal Accumulated Depreciation Depreciation expense Debit 7,000 7,000 B) 4,900 Accumulated Depreciation Depreciation Expense 4,900 C) 7,000 Depreciation Expense Accumulated Depreciation 7,000 D) 4,900 Depreciation Expense Accumulated Depreciation 4,900 E) 42,000 Accumulated Depreciation Depreciation Expense 42,000 Multiple Choice ption . Option B. Optionc ption D. Option E. 10 Most
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