In preparing its consolidated financial statements at December 31, 20X7, the following consolidation entries were included in the consolidation worksheet of Powder Corporation: Consolidation worksheet Entries Debit Credit Buildings Gain on Sale of Building 245,000 49,000 Accumulated Depreciation Consolidation Morksheet Entries Accumulated Depreciation Debit 3,500 Depreciation Expense 3,500 Powder owns 60 percent of Snow Corporation's voting common stock. On January 1, 20X7, Snow sold Powder a building it had purchased for $1,040,000 on January 1, 20X1, and depreciated on a 20-year straight-line basis. Powder recorded depreciation for 20X7 using straight-line depreciation and the same useful life and residual value as Snow Required: a. What amount did Powder pay Snow for the building? Amount paid b. What amount of accumulated depreciation did Snow report at January 1, 20X7, prior to the sale? Accumulated depreciation 294,000 Credit