Question 5 Intercompany transactions (10 points) Polly owns 100% of the stock in Solly. On January 1, Year 1, Polly sells a building to Solly. On Polly's books, the building has a cost of $30 million, and accumulated depreciation of $5 million. It has 20 more years of expected useful life. Solly pays $40 million for the building. Polly uses the equity method for accounting for investments. A. What accounts, if any, need to be adjusted in consolidation in Year 1? You may either explain verbally, or write out an entry. You must give me numbers and tell me if the entries increase or decrease the accounts! ( 5 points) B. Assume Solly still owns the building in Year 3. What accounts, if any, need to be adjusted in consolidation in year 3? You may either explain verbally, or write out an entry. You must give numbers and tell me if the entries increase or decrease the accounts! ( 5 points)