On January 1, Hoover Corp. sold a machine for $1,050,000 to Tina Corp., its wholly owned subsidiary. Hoover paid $1.2 million for this machine, which had accumulated depreciation of $300,000 and an estimated remaining life of 6 years at the date of the intra-entity transfer. In Hoover's December 31 consolidated balance sheet, this machine should be included in cost and accumulated depreciation as

Choices:

Machine. $1,200,000, Accumulated depreciation: $450,000

Machine: $1,050,000, Accumulated depreciation: $175,000

Machine: $1,200,000; Accumulated depreciation: $475,000

Machine: $1,200,000, Accumulated depreciation: $450,000