On January 1, 20X3, Sub Ltd., 80%-owned by Par Ltd., sold a building to Par Ltd. for
Question:
On January 1, 20X3, Sub Ltd., 80%-owned by Par Ltd., sold a building to Par Ltd. for $1,980,000. The building cost Sub $800,000 and was 70% depreciated (at 5% per year). Par will depreciate the building over the six remaining years, straight-line.
Required
Give the consolidation eliminations required in relation to this transaction for the years ended
a. 20X3;
b. 20X5.
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a 20X3 Gain on sale of building 1740000 Accumulated depreciation 560000 Buildings 1180000 Eliminates ...View the full answer
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Related Book For
Advanced Financial Accounting
ISBN: 978-0132928939
7th edition
Authors: Thomas H. Beechy, V. Umashanker Trivedi, Kenneth E. MacAulay
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