Dalton Corp. owned 70% of the outstanding common stock of Shrugs Inc. On January 1, 2016, Dalton
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Dalton Corp. owned 70% of the outstanding common stock of Shrugs Inc. On January 1, 2016, Dalton acquired a building with a ten-year life for $420,000. No salvage value was anticipated and the building was to be depreciated on the straight-line basis. On January 1, 2018, Dalton sold this building to Shrugs for $392,000. At that time, the building had a remaining life of eight years but still no expected salvage value. For consolidation purposes, what is the Excess Depreciation (ED entry) for this building for 2018?
Event | General Journal | Debit | Credit | ||||
A) | Accumulated Depreciation | 7,000 | |||||
Depreciation expense | 7,000 | ||||||
B) | Accumulated Depreciation | 4,900 | |||||
Depreciation Expense | 4,900 | ||||||
C) | Depreciation Expense | 7,000 | |||||
Accumulated Depreciation | 7,000 | ||||||
D) | Depreciation Expense | 4,900 | |||||
Accumulated Depreciation | 4,900 | ||||||
E) | Accumulated Depreciation | 42,000 | |||||
Depreciation Expense | 42,000 | ||||||
Multiple Choice
Option A.
Option B.
Option C.
Option D.
Option E.
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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