Question $8$ At the beginning of $2015,$ a parent company sold a patent, carried on its books at $$5,500,000,$ to its subsidiary for $$4,000,000.$ The patent had a remaining life of six years and straight$-$line amortization is used. It is now the end of $2017,$ and the subsidiary still owns the patent. On the $2017$ consolidation working paper, eliminations $($I$)$:

increase the patent by $$1,000,000.$

reduce the parent's investment account by $$1,000,000.$

increase the subsidiary's beginning retained earnings by $$250,000.$

reduce amortization expense by $$500,000.$

Question $9$ : At the beginning of $2013,$ a subsidiary sold equipment, carried on its books at $$2,000,000,$ net, to its parent for $$4,500,000.$ The equipment had a remaining life of $20$ years and straight$-$line depreciation is used. It is now the end of $2016,$ and the parent still owns the equipment. On the $2016$ consolidation working paper, eliminations $($I$)$:

reduce the parent's investment account by $$2,125,000.$

reduce the subsidiary's beginning retained earnings account by $$2,000,000.$

reduce depreciation expense by $$125,000.$

reduce net equipment by $$2,500,000.$