Dunn Corporation owns 100 percent of Grey Corporation’s common stock. On January 2, 2023, Dunn sold to Grey for $40,000 machinery with a carrying amount of $30,000. Grey is depreciating the acquired machinery over a five-year remaining life by the straight-line method. The net adjustments to compute 2023 and 2024 consolidated net income would be an increase (decrease) of

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2023 a. $(8,000) b. $(8,000) c. $(10,000) d. $(10,000) 2024 $2,000 -0- $2,000 -0-