Question: I'm not sure about the answer, can someone explain it? Dunn Corporation owns 100 percent of Grey Corporation's common stock. On January 2, 2017, Dunn

I'm not sure about the answer, can someone explain it?

Dunn Corporation owns 100 percent of Grey Corporation's common stock. On January 2, 2017, Dunn sold to Grey $45,900 of machinery with a carrying amount of $31,250. Grey is depreciating the acquired machinery over a ve-year remaining life by the straight-line method. The net adjustments to compute 2017 and 2018 consolidated net income would be an increase (decrease) of Multiple Choice 0 2017 2018 $(11,720) 0 . 2017 2018 $(14,650) $2,930 O 2017 2018 $(14,650) 0 O 2017 2018 $(11,720) $2,930

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