Pluto Corporation owns 70 percent of Saturn Company's stock. On July 1, 20X4, Pluto sold a piece of equipment to Saturn for $56,350. Pluto had purchased this equipment on January 1, 20X1, for $63,000. The equipment's original 15-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, while preparing the 20X4 consolidated income statement, depreciation expense will be
A. credited for $350 in the consolidation entries.
B. debited for $700 in the consolidation entries.
C. debited for $350 in the consolidation entries.
D. credited for $700 in the consolidation entries.
Answer: A
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