On January $1,20$X$9,$ Planet Corporation sold equipment for $$400,000$ to Star Corporation, its wholly owned subsidiary. Planet had paid $$900,000$ for this equipment, which had accumulated depreciation of $$170,000.$ Planet estimated a $$50,000$ salvage value and depreciated the tractor using the straight$-$line method over $10$ years, a policy that Star continued. In Planet's December $31,20$X$9,$ consolidated balance sheet, this tractor should be included in fixed$-$asset cost and accumulated depreciation as:

$$CostAccumulated DepreciationA.$ $900,000$$ $255,000$B$.$$ $900,000$$ $120,000$C$.$$ $730,000$$ $85,000$D$.$$ $730,000$$ $170,000$

Multiple Choice

Option B

Option D

Option C

Option A