Sky Corporation owns 75 percent of Earth Company's stock.On July 1,2008,Sky sold a building to Earth for $33,000.Sky had purchased this building on January 1,2006,for $36,000.The building's original eight-year estimated total economic life remains unchanged.Both companies use straight-line depreciation.The equipment's residual value is considered negligible.
-Based on the information provided,in the preparation of the 2009 consolidated income statement,depreciation expense will be:
A) debited for $750 in the eliminating entries.
B) credited for $750 the eliminating entries.
C) credited for $1500 in the eliminating entries.
D) debited for $1500 in the eliminating entries.
Correct Answer:
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