Dunn Corporation owns 100 percent of Grey Corporations common stock. On January 2, 2017, Dunn sold to Grey $59,800 of machinery with a carrying amount of $45,000. Grey is depreciating the acquired machinery over a five-year remaining life by the straight-line method. The net adjustments to compute 2017 and 2018 consolidated net income would be an increase (decrease) of

• 2017	2018
  $(14,800)	0

• 2017	2018
  $(11,840)	0

• 2017	2018
  $(14,800)	$2,960

• 2017	2018
  $(11,840)	$2,960