On January 1, 20X9, Light Corporation sold equipment for $400,000 to Star Corporation, its wholly owned subsidiary. Light had paid $900,000 for this equipment, which had accumulated depreciation of $170,000. Light estimated a $50,000 salvage value and depreciated the tractor using the straight-line method over 10 years, a policy that Star continued. In Light's December 31, 20X9, consolidated balance sheet, this tractor should be included in fixed-asset cost and accumulated depreciation as:

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The Answer of On January 1, 20X9, Light Corporation sold equipment for $400,000 to Star Corporation, its wholly owned subsidiary. Light had paid $900,000 for this equipment, which had accumulated depreciation of $170,000. Light estimated a $50,000 salvage value and depreciated the tractor using the straight-line method over 10 years, a policy that Star continued. In Light's December 31, 20X9, consolidated balance sheet, this tractor should be included in fixed-asset cost and accumulated depreciation as:

On January 1, 20X9, Light Corporation Sold Equipment for $400,000