Use the following to answer questions 1-7: Lincoln Corporation owns 80 percent of the common stock of Amston Company, purchased at book value, and accounts for its investment using the basic equity method. On January 1, 2000, Amston sold a modular building, which it had purchased 3 years before for $2,400,000, to Lincoln for $1,820,000. Amston was depreciating the building on a straight-line basis over 10 years. Lincoln continued to depreciate the building using straight-line depreciation over the 7 years remaining in the building's original life. Lincoln reported separate operating income of $180,000 in 2000 and $280,000 in 2001. Amston reported net income of $300,000 in 2000 and $80,000 in 2001. Neither company declared any dividends. 1. Based on the information given above, at what amount should the building (gross) be reported in the December 31, 2001, consolidated balance sheet? A) $1,300,000 B) $1,560,000 C) $1,820,000 D) $2,400,000 d 2. Based on the information given above, at what amount should the accumulated depreciation on the building be shown in the December 31, 2001, consolidated balance sheet? A) $ 720,000 B $ 760,000 $ 780,000 $1,200,000 d Some comments: The key to answering questions about Consolidated Income usually involves being able to calculate it with the quick method shown in the text & in class. It is summarized 130 of my lecture notes, right after Ex. 7.3 (it's also repeated on pp. 160-161). on p. 3. Consider the information given above. If, in 2001, Lincoln reported depreciation expense of $600,000 and Amston reported depreciation expense of $380,000, what amount should be reported as depreciation expense in the 2001 consolidated income statement? A) $904,000 B) $960,000 C) $964,000 $980,000 @