(2) At the beginning of 2019, the subsidiary sold equipment with a 5-year remaining life and a...
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Question:
(2) At the beginning of 2019, the subsidiary sold equipment with a 5-year remaining life and a net book value of $50,000(book value; $70,000 and accumulated depreciation; $20,000) to its parent for $80,000. The parent still holds the equipment at the end of 2020.
Required
- Prepare the eliminating entries (I) for the 2020 consolidation working paper for the above intercompany transaction.(6 pts)
- Now assume that the equipment was sold to an outside company at the end of 2020. Repeat the requirements of part a.(3 pts)
- Now assume that the equipment was sold to an outside company at the beginning of 2020. Repeat the requirements of part a.(3 pts)
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
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