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. $6,000.
B. $11,250.
C. $10,500.
D. $8,250.
Answer: D
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