On January 1 of the current year, Rogers Inc. sold equipment costing $1,400,000 with accumulated depreciation of $840,000 to Cooper Corp., a wholly owned subsidiary, for $750,000. Rogers had owned the equipment for six years and was depreciating the equipment using the straight-line method over ten years with no salvage value. Cooper will continue to use the straight-line method over the remaining four years of the equipment's economic life. In consolidated statements at December 31 of the current year, the cost and accumulated depreciation, respectively, should be.

Multiple Choice

$1,400,000 and $840,000

$1,400,000 and $1,027,500

$750,000 and $187,500

$1,400,000 and $980,000

$750,000 and $840,000