Mortar Corporation acquired 80 percent of Granite Corporation's voting common stock on January 1,20X7.On January 1,20X8,Mortar received $350,000 from Granite for equipment Mortar had purchased on January 1,20X5,for $400,000.The equipment is expected to have a 10-year useful life and no salvage value.Both companies depreciate equipment on a straight-line basis.
-Based on the preceding information,in the preparation of elimination entries related to the equipment transfer for the 20X8 consolidated financial statements,net effect on accumulated depreciation will be:

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The Answer of Mortar Corporation acquired 80 percent of Granite Corporation's voting common stock on January 1,20X7.On January 1,20X8,Mortar received $350,000 from Granite for equipment Mortar had purchased on January 1,20X5,for $400,000.The equipment is expected to have a 10-year useful life and no salvage value.Both companies depreciate equipment on a straight-line basis.
-Based on the preceding information,in the preparation of elimination entries related to the equipment transfer for the 20X8 consolidated financial statements,net effect on accumulated depreciation will be:

Mortar Corporation Acquired 80 Percent of Granite Corporation's Voting Common