Palmer Corp. owned 80% of the outstanding common stock of Creed Inc. On January 1, 2019, Palmer acquired a building with a ten-year life for $450,000. No salvage value was anticipated and the building was to be depreciated on the straight-line basis. On January 1, 2021, Palmer sold this building to Creed for $412,000. At that time, the building had a remaining life of eight years but still no expected salvage value. For consolidation purposes, what is the Excess Depreciation (ED entry) for this building for 2021?

Event	General Journal	Debit	Credit
A)	Accumulated Depreciation		6,500
	Depreciation Expense					6,500
B)	Accumulated Depreciation		5,200
	Depreciation Expense					5,200
C)	Depreciation Expense		6,500
	Accumulated Depreciation					6,500
D)	Depreciation Expense		5,200
	Accumulated Depreciation					5,200
E)	Accumulated Depreciation		45,000
	Depreciation Expense					45,000

Multiple Choice

Option C.

Option E.

Option D.

Option B.

Option A.