on January 1, 2016, North Corporation purchased a delivery truck with an expected useful life of five years, and

a salvage value of $8,000. On January 1, 2018, North sold the truck to South Corporation.

South assumed the same salvage value and remaining life of three years used by North.

Straight-line depreciation is used by both companies. On January 1, 2018,

North recorded the following journal entry:

DebitCredit

Cash50,000

Accumulated depreciation18,000

Truck53,000

Gain on Sale of Truck15,000

South holds 80% of North. North reported net income of $75,000 in 2018 and South's separate net income

(excludes interest in North) for 2018 was $110,000.

In preparing the consolidated financial statements for 2014, the elimination entry for depreciation expense was a

A) credit for $5,000B) debit for $5,000..

C) debit for $15,000.D) credit for $15,000.

A.

credit for $5,000

B.

debit for $5,000

C.

debit for $15,000

D.

credit for $15,000