On January 1, 20X9, Planet Corporation sold equipment for $400,000 to Star Corporation, its wholly owned subsidiary. Planet had paid $900,000 for this equipment, which had accumulated depreciation of $170,000. Planet estimated a $50,000 salvage value and depreciated the tractor using the straight-line method over 10 years, a policy that Star continued. In Planet's December 31, 20X9, consolidated balance sheet, this tractor should be included in fixed-asset cost and accumulated depreciation as: CostAccumulatedDepreciationA.$900,000 $255,000 B.$900,000 $120,000 C.$730,000 $85,000 D.$730,000 $170,000
A. Option A
B. Option B
C. Option C
D. Option D
Answer: A
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