On January 1, year 1, P Company sold a machine for P900,000 to S Company, its wholly owned subsidiary. P paid P1,100,000 for this machine, which had accumulated depreciation of P250,000. P estimated a P100,000 salvage value and depreciated the machine on the straight-line method over twenty years, a policy which S continued.

 In P's December 31, year 1 consolidated balance sheet, this machine should be included in cost and accumulated depreciation as?

Answer rating: 100% (QA)

In Ps December 31 year 1 consolidated balance sheet the machine ... View the full answer