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Questions 14-15 (6 points each) Gavin Co. owns 80% of the outstanding stock of Biloxi Inc. On January 1, 2018, Gavin acquired a building with
Questions 14-15 (6 points each) Gavin Co. owns 80% of the outstanding stock of Biloxi Inc. On January 1, 2018, Gavin acquired a building with a 20 year life for $750,000. Gavin depreciated the building on the straight-line basis assuming no salvage value. On January 1, 2021, Gavin sold the building to Biloxi for $850,000. At that time, the building had a remaining life of 17 years but still no expected salvage value and Biloxi also used the straight-line method for depreciation. In preparing financial statements, the consolidating entries will? 14.) For 2021 A.) Decrease income by $200,000 B.) Decrease income by $212,500 C.) Increase income by $12,500 D.) Increase income by $212,500 E.) Decrease income by $12,500 F.) Decrease income by $225,000 15.) For 2022 A.) Decrease income by $12,500 B.) Increase income by $12,500 C.) Have no effect on income
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