A parent company acquires all of a subsidiarys voting stock at the beginning of 2015....
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Accounting
A parent company acquires all of a subsidiarys voting stock at the beginning of 2015. At the date of acquisition, the subsidiarys equipment had a book value of $40 million and a fair value of $25 million. The equipment had a 10-year remaining life, straight-line. Consolidation eliminating entry (O), on the consolidation working paper for 2018, has what effect on depreciation expense?
A.
Credit for $6 million
B.
Credit for $1.5 million
C.
Debit for $1.5 million
D.
Debit for $6 million
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