At the Beginning of the Current Year, the Parent Sold

At the beginning of the current year, the parent sold new equipment for which it paid $1,000,000 to its subsidiary for $1,500,000. The parent had not recorded any depreciation on the equipment. The equipment had a remaining life of 10 years at that time, straight-line. The subsidiary still has the equipment at year-end. On the consolidation working paper, the net effect of eliminations (I) will be to credit:

A) Accumulated depreciation for $50,000
B) Depreciation expense for $150,000
C) Equipment, net of accumulated depreciation for $450,000
D) Gain on sale of equipment for $500,000