Dudes Outfitters Ltd. is a 70%-owned subsidiary of Trail Ltd. On January 10, 20X2, Dudes sold some
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Dudes Outfitters Ltd. is a 70%-owned subsidiary of Trail Ltd. On January 10, 20X2, Dudes sold some display cases to Trail Ltd. for $95,000, recognizing a gain of $48,000 before tax on the transaction. Trail Ltd. depreciated the cases on a straight-line basis over six years, taking a full year’s depreciation in 20X2.
On February 12, 20X5, Trail sold the display cases to an unaffiliated company for $55,000.
Required
Prepare the appropriate consolidated adjustments relating to the display cases for each year ended December 31, 20X2, through 20X5.
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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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