On January 2, 2019 Pedro Company sold equipment with carrying amount of $45,000 to Sandro Company, its wholly-owned subsidiary, for $60,000. The equipment had a remaining useful life of three years with zero salvage value. Both firms use the straight-line depreciation method, and assume no residual value. 

If Pedro forgot to make year-end equity adjustments, what was the Padro’s investment in Sandro at December 31, 2019?

Answer rating: 100% (QA)

To calculate Pedros investment in Sandro at December 31 2019 we need to account for the intercompany ... View the full answer