?

On January 1, year 1, Poe Corp. sold a machine for
$900,000 to Saxe Corp., its wholly owned subsidiary. Poe paid
$1,100,000 for this machine, which had accumulated depreciation
of $250,000. Poe estimated a $100,000 salvage value and
depreciated the machine on the straight-line method over twenty
years, a policy which Saxe continued. In Poe’s December 31, year
1 consolidated balance sheet, this machine should be included in
cost and accumulated depreciation as

Cost

Accumulated depreciation