Intercompany sale of depreciable assets

Assume on January $1,2018,$ a parent company acquired a $75\%$ interest in a subsidiary's voting common stock. On the date of acquisition, the fair value of the subsidiary's net assets equaled

their reported book values. On January $1,2020,$ the subsidiary purchased a building for $$604,800$ The building has a useful life of $8$ years and is depreciated on a straight$-$line basis with no

salvage value. On January $1,2022,$ the subsidiary sold the building to the parent for $$504,000$ The parent estimated that the building had a six$-$year remaining useful life and no salvage value.

The parent also uses the straight$-$line method of amortization. For the year ending December $31,2022,$ the parent's "stand$-$alone" income $($i$.$e$.,$ net income before recording any adjustments

related to preconsolidation investment accounting$)$ is $$630,000.$ The subsidiary's recorded net income is $$126,000.$

Based on this information, determine the balance for Consolidated building $($net of accumulated depreciation$)$:

Select one:

a$.$ $$420,000$

b$.$ $$378,000$

c$.$ $$504,000$

d$.$ $$604,800$