Question
Petrol Company acquired a 90% interest in Seadig Corporation on January 1, 2013. On January 1, 2014, Seadig sold a building with a book value
Petrol Company acquired a 90% interest in Seadig Corporation on January 1, 2013. On January 1, 2014, Seadig sold a building with a book value of $120,000 to Petrol for $150,000. The building had a remaining useful life of ten years and no salvage value. Straight-line depreciation is used. The separate balance sheets of Petrol and Seadig on December 31, 2014 included the following balances:
Petrol Seadig
Buildings $500,000 $230,000
Accumulated Depr. - Buildings 180,000 79,000
The consolidated amounts for Buildings and Accumulated Depreciation - Buildings that appeared, respectively, on the balance sheet at December 31, 2014, were
A. | $700,000 and $256,000. | |
B. | $700,000 and $259,000. | |
C. | $730,000 and $256,000. | |
D. | $730,000 and $259,000. |
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