Assume a parent company owns a $100\%$ controlling interest in its subsidiary.

On January $1,2022,$ the Parent company sold fixed assets to it's subsidiary for $$900,000$ with an estimated remaining useful life of $5$ years.

The Parent Company had on their books, at the date of sale, the following for these fixed assets:

Original Cost $1,250,000$

Accumulated Depreciation $375,000$

Net Carrying Value $875,000$

Prepare the consolidating workpaper journal entries, relating to THE SALE OF THE EQUIPMENT, necessary in $2022.$

Answer rating: 100% (QA)

To prepare the consolidating workpaper journal entries for the sale of equip... View the full answer