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On January 2014, P Corporation sold a warehouse with a book value of $80,000 and...

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Accounting

image On January 2014, P Corporation sold a warehouse with a book value of $80,000 and a 20 -year remaining useful life to its wholly owned subsidiary, S Corp, for $120,000. Both P and S use the straight-line depreciation method. On December 31, 2014, the separate company financial statements contained the following balances connected with the warehouse: A working paper entry to consolidate the financial statements of P and S on December 31,214 will include: a. A credit to depreciation expense for $6,000. b. A credit to gain on sale of warehouse for $40,000. c. A debit to accumulated depreciation for $2,000. d. A debit to gain of sales of warehouse for $38,000. e. None of the above

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