Peregrine Corporation acquired a 93% interest in Cliff Corporation in 2334 at a time when Cliff's book values and fair values were equal to one another. On January 1, 2335, Cliff sold a truck with a $45,333 book value to Peregrine for $93,333. Peregrine is depreciating' the truck' over 13 years using the straightline method. Separate incomes for Peregrine and Cliff for 2335 were as follows: Peregrine Cliff Sales 5 1,333,333 $ 1,353,333 Gain on sale of truck 45,333 Cost of Goods Sold E 253,333} I 235,333} Depreciation expense I 453,333} { 135,333} Other expenses ( 133,333} I 453,333} Separate incomes S 423,333 $ 225,333