Paper Corporation owns 75 percent of Scissor Company's stock.On July 1,20X8,Paper sold a building to Scissor for $33,000.Paper had purchased this building on January 1,20X6,for $36,000.The building's original eight-year estimated total economic life remains unchanged.Both companies use straight-line depreciation.The building's residual value is considered negligible.
-Based on the information provided,the gain on sale of the building eliminated in the consolidated financial statements for 20X8 is:
A) $8,250.
B) $10,500.
C) $6,000.
D) $11,250.
Correct Answer:
Verified
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