Patriot Corporation owns 100% of Simon Companys common stock. On January 1, 2017, Patriot sold equipment with
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Patriot Corporation owns 100% of Simon Company’s common stock. On January 1, 2017, Patriot sold equipment with a book value of $350,000 to Simon for $500,000. Simon is depreciating the equipment over a ten-year life by the straight-line method. The net adjustments to compute 2017 and 2018 consolidated income would be an increase (decrease) of:
a) 2017, ($150,000); 2018, $0
b) 2017, ($150,000); 2018, $15,000
c) 2017, ($135,000); 2018, $0
d) 2017, ($135,000); 2018, $15,000
Related Book For
Governmental and Nonprofit Accounting
ISBN: 978-0132751261
10th edition
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
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