Exercise 7-15 (Static) Sale of Building to Parent in Prior Period LO 7-6 Pea Company purchased 70 percent of Split Company's stock approximately 20 years ago. On December 31, 20X8, Pea purchased a building from Split for $ 300,000. Split had purchased the building on January 1, 20X1, at a cost of $ 400,000 and used straight-line depreciation on an expected life of 20 years. The asset's total estimated economic life is unchanged as a result of the intercompany sale. Required: a. What amount of depreciation expense on the building will Pea report for 20X9? Annual depreciation expense reported by Pea b. What amount of depreciation expense would Split have reported for 20X9 if it had continued to own the building? Annual depreciation expense reported by Split c. Prepare the consolidation entry or entries needed to eliminate the effects of the intercompany building transfer in preparing a full set of consolidated financial statements at December 31, 20X9. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list Record the entry to eliminate the gain on the equipment and to correct the asset's basis. B Record the entry to adjust Accumulated Depreciation. ct the Note : journal entry has been entered Record entry Credit Clear entry view consolidation entries >