Pat Corporation acquired 80 percent of Smack Corporation's voting common stock on January 1, 20X7. On December 31, 20X8, Pat received $390,000 from Smack for equipment Pat had purchased on January 1, 20X5, for $400,000. The equipment is expected to have a 10-year useful life and no salvage value. Both companies depreciate equipment on a straight-line basis.

A.) Based on the preceding information, in the preparation of the 20X8 consolidated financial statements, equipment will be:

B.) Based on the preceding information, the gain on sale of the equipment recorded by Pat for 20X8 is:

C.) Based on the preceding information, in the preparation of the 20X9 consolidated financial statements, equipment will be:

D.) Based on the preceding information, in the preparation of the 20X9 consolidated income statement, depreciation expense will be:

E.) Based on the preceding information, in the preparation of consolidation entries related to the equipment transfer for the 20X9 consolidated financial statements, the net effect on accumulated depreciation will be: