Penn Company owns 80% of Senn Company's common stock. On January 2, 2022, Penn Company sold to Senn Company for $40,000 equipment with a book value of $30,000. Senn Company is depreciating the acquired equipment over a 5-year useful life by the straight-line method. The adjustments to compute the 2022 and 2023 consolidated income statement (ignoring tax) would be an increase (decrease) of

year 2022 year 2023

A -8000 2,000

b -8000 0

C -10,000 2000

D -10,000 0