On January 1, 2014, Spelt Company sold to Pub Corporation, for $120,000, machinery with a book value of $90,000 (including $15,000 of accumulated

 On January 1, 2014, Spelt Company sold to Pub Corporation, for $120,000, machinery with a book value of $90,000 (including $15,000 of accumulated depreciation), a remaining economic life of six years, and no residual value. Pub adopted the straight-line method of depreciation for the machinery. Pub owns 80% of Spelt's outstanding common stock.  Also in 2014, Pub sold land to Spelt that had originally cost Pub $70,000 in 2006. Pub charged Spelt $140,000 for the land. Both transactions were executed in cash.