Question 9 (4 points) Company X and Company Z are related companies subject to consolidation. On 1/1/21, Company X sold machinery to Company Z for $200,000 cash that had an original purchase price of $100,000, useful life of 10 years, accumulated depreciation at the time of sale of $40,000, and was expected to be continued to be depreciated at $10,000 per year had it not been sold. Company Z placed the machine in service on 1/1/21, and is depreciating it over 2 years using straight-line depreciation. The portion of the elimination entry at the time of consolidation to account for any required adjustment to the equipment account would be: a) Debit to Equipment of $50,000 b) Credit to Equipment of $100,000 c) Credit to Equipment of $50,000 d) Debit to Equipment of $100,000 Question 10 (4 points) Company P purchased 100% of the outstanding common stock of Company Son 1/1/21 for $600,000 in cash and stock. Company P accounts for the income of Company S using the Cost Method, and during the year Company S reported Net Income of $100,000 and declared and paid dividends of $60,000. Assuming no other transaction between the two companies, the balance in the "Investment Income from Company S" on the books of Company P on 12/31/21 will be: a) $40,000 b) $60,000 c) $0 d) $100,000