On January 1, 2019, S Corp. purchased a computer with an expected economic life of 20...
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On January 1, 2019, S Corp. purchased a computer with an expected economic life of 20 years. On January 1, 2021, S Corp. sold the computer to G Co. and recorded the following entry: Cash Accumulated depreciation Loss on sale of equipment Computer equipment P30,000 4,000 6,000 P40,000 S Corp. holds 60 percent of the voting shares of G Co. G Co. reported net income of P45,000, and S Corporation reported income from its own operations of P85,000 for 2021. There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer. How much is the consolidated net income for the year 2021? On January 1, 2019, S Corp. purchased a computer with an expected economic life of 20 years. On January 1, 2021, S Corp. sold the computer to G Co. and recorded the following entry: Cash Accumulated depreciation Loss on sale of equipment Computer equipment P30,000 4,000 6,000 P40,000 S Corp. holds 60 percent of the voting shares of G Co. G Co. reported net income of P45,000, and S Corporation reported income from its own operations of P85,000 for 2021. There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer. How much is the consolidated net income for the year 2021?
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
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