On January 1, 20X2, Stuffy sold a delivery truck with a book value of $35,000 to Puffy
Question:
On January 1, 20X2, Stuffy sold a delivery truck with a book value of $35,000 to Puffy Corporation for $50,000. The truck had a remaining useful life of three years and straight-line depreciation is used by both companies.
Puffy holds 60% of Stuffy. Stuffy reported net income of $55,000 in 20X2 and Puffy's separate net income (excludes Income from Stuffy) for 20X2 was $98,000.
13/ In preparing the consolidated financial statements for 20X2, the elimination entry for depreciation expense was a:
Select one:
a. debit for $5,000
b. credit for $5,000
c. debit for $15,000
d. credit for $15,000
14/ In the eliminating/adjusting entries on consolidation working papers for 20X2, the Truck account was:
Select one:
a. debited for $3,000
b. credited for $3,000
c. debited for $15,000
d.credited for $15,000
15/ Controlling interest share in consolidated net income for 20X2 was:
Select one:
a.$121,000
b.$125,000
c.$131,000
d.$143,000
16/ The non-controlling interest share in consolidated income for 20X2 was:
Select one:
a.$18,000
b.$22,000
c.$23,000
d.$27,000
Expert Answer:
on january 2002 S Sold Truck to P Book Value 35000 To 50000 truck has Remaining useful life of 3 yea... View the full answer
