Hilton Corporation sold a press to its 80%-owned subsidiary, Agri Fab Inc., for $5,000 on January 1,

Question:

Hilton sold a press to its 80%-owned subsidiary, Agri Fab Inc., for $5,000 on January 1, 2012. The press originally was purchased by Hilton on January 1, 2011, for $20,000, and $6,000 of depreciation for 2011 had been recorded. The fair value of the press on January 1, 2012, was $10,000. Agri Fab proceeded to depreciate the press on a straight-line basis, using a 5-year life and no . On December 31, 2013, Agri Fab, having no further need for the machine, sold it for $2,000 and recorded a loss on the sale.
Explain the adjustments that would have to be made to the separate income statements of the two companies to arrive at the s for 2012 and 2013.
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