On January 1, 2011, Bigg Corporation Sold Equipment with a Book

On January 1, 2011, Bigg Corporation sold equipment with a book value of $20,000 and a 10-year remaining useful life to its wholly-owned subsidiary, Little Corporation, for $30,000.Both Bigg and Little use the straight-line depreciation method, assuming no salvage value.On December 31, 2011, the separate company financial statements held the following balances associated with the equipment: A working paper entry to consolidate the financial statements of Bigg and Little on December 31, 2011 included a

A) debit to equipment for $10,000.
B) credit to gain on sale of equipment for $10,000.
C) debit to accumulated depreciation for $1,000.
D) credit to depreciation expense for $3,000.