A Parent Entity Sold a Depreciable Non-Current Asset to a Subsidiary

question 5

Multiple Choice

A parent entity sold a depreciable non-current asset to a subsidiary entity for $5600. The asset originally cost $6000 and at the date of sale accumulated depreciation was $1000. The amount of the unrealised gain on sale to be eliminated is:

• A) $5600.
• B) $1000.
• C) $600.
• D) $400.