On January 1, 20X3, Sub Ltd., 80%-owned by Par Ltd., sold a building to Par Ltd. for

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On January 1, 20X3, Sub Ltd., 80%-owned by Par Ltd., sold a building to Par Ltd. for $1,980,000. The building cost Sub $800,000 and was 70% depreciated (at 5% per year). Par will depreciate the building over the six remaining years, straight-line.

Required

Give the consolidation eliminations required in relation to this transaction for the years ended

a. 20X3;

b. 20X5.

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Advanced Financial Accounting

ISBN: 978-0132928939

7th edition

Authors: Thomas H. Beechy, V. Umashanker Trivedi, Kenneth E. MacAulay

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Question Posted: May 24, 2018 09:32 AM

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On January 1, 20X3, Sub Ltd., 80%-owned by Par Ltd., sold a building to Par Ltd. for

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a 20X3 Gain on sale of building 1740000 Accumulated depreciation 560000 Buildings 1180000 Eliminates ...View the full answer

Advanced Financial Accounting

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