Fishing Tours Ltd. is a 75% owned subsidiary of Boat Rentals Ltd. On January 1, 2012, Fishing

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Question:

Tours sold a boat to Boat Rentals Ltd. for $80,000, recognizing a gain of $30,000. Boat Rentals

depreciated the boat on a straight-line basis over five years. On July 1st, 2015, Boat Rentals Ltd. sold the boat to an unaffiliated company for $55,000. Assume a 40% corporate tax rate.

Required:

Prepare the appropriate consolidation adjustments relating to the boat for December 31, 2015.

Related Book For answer-question

Advanced Accounting

ISBN: 978-0538480284

11th edition

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

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Posted Date: Dec 13, 2022 05:04 AM

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Fishing Tours Ltd. is a 75% owned subsidiary of Boat Rentals Ltd. On January 1, 2012, Fishing

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Expert Answer:

Fishing Tours Ltd Dr Gain on Sale of Boat 30000 Cr Cash 80... View the full answer

Advanced Accounting

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