Sanders acquired 100% of Clinton on January 1, 2017. Thetransaction was not a bargain purchase. On the date of theacquisition, Clinton's Building account had a net book value of3,338,416 and a fair value of 3,981,039. As of 1/1/2017, Clinton'sbuildings have a remaining life of 10 years and are depreciated ona straight-line basis with no salvage value.
When preparing Sanders' consolidated financial statements for2017, what AAP adjustment must be made for Depreciationexpense?
