Dunn Corporation owns 100 percent of Grey Corporations common stock. On January 2, 2020, Dunn sold to Grey $52,800 of machinery with a carrying amount of $40,000. Grey is depreciating the acquired machinery over a five-year remaining life by the straight-line method. The net adjustments to compute 2020 and 2021 consolidated net income would be an increase (decrease) of

Multiple Choice

A)

2020	2021
$(12,800)	0

B)

2020	2021
$(10,240)	0

C)

2020	2021
$(10,240)	$2,560

D)

2020	2021
$(12,800)	$2,560