On 1/3/x6, Pylux sold equipment costing 100000 to its 100%-owned subsidiary, Sylux, for 80000. At the time of the sale, the equipment had been 50% depreciated (using the straight line method and an assigned life of 10 years). SYlux continued depreciating the equipment by using the straight line method over a remaining life of 5 years.

What are the cost and accumulated depreciation, respectively, of this equipment in the 12/31/x6 consolidated balance sheet?

What is the amount of the intercompany profit or loss that must be deferred at 12/31/x6?

What is the amount of the adjustment to Depreciation Expense in preparing the consolidation worksheet at 12/31/x6?

Answer rating: 100% (QA)

To determine the cost and accumulated depreciation of the equipment in the consolidated balance sheet on 1231x6 we need to calculate the depreciation ... View the full answer