Blank Corporation owns 60 percent of Grand Corporations voting common stock. On December 31, 20X4, Blank paid

Blank Corporation owns 60 percent of Grand Corporation’s voting common stock. On December 31, 20X4, Blank paid Grand $276,000 for dump trucks Grand had purchased on January 1, 20X2. Both companies use straight-line depreciation. The elimination entry included in preparing consolidated financial statements at December 31, 20X4, was

Required
a. What amount did Grand pay to purchase the trucks on January 1, 20X2?
b. What was the economic life of the trucks on January 1, 20X2?
c. Give the worksheet elimination entry needed in preparing the consolidated financial statements at December 31,20X5.

Transcribed Image Text:

Trucks Gain on Sale of Trucks 24,000 36,000 Accumulated Depreciation 60,000