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Mortar Corporation acquired 80 percent of Granite Corporation's voting common stock on January 1, 20X7....

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Accounting

Mortar Corporation acquired 80 percent of Granite Corporation's voting common stock on January 1, 20X7. On December 31, 20X8, Mortar received $390,000 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 equipments on a straight-line basis. Based on the preceding information, in the preparation of the 20X8 consolidated financial statements, equipment will be: (Points : 1) debited for $1,000. debited for $10,000. credited for $15,000. debited for $25,000.

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