Pitcher Corporation purchased 60 percent of Softball Corporation's voting common stock on January 1, 20X1. On...

Transcribed Image Text:

Pitcher Corporation purchased 60 percent of Softball Corporation's voting common stock on January 1, 20X1. On December 31, 20X5, Pitcher received $ 210,000 from Softball for a truck Pitcher had purchased on January 1, 20X2, for $300,000. The truck is expected to have a 10-year useful life and no salvage value. Both companies depreciate trucks on a straight-line basis. Required: a. Prepare the worksheet consolidation entry or entries needed at December 31, 20X5, to remove the effects of the Intercompany sale. Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. view transaction list Consolidation Worksheet Entries A Record the entry to eliminate the gain on the truck and to correct the asset's basis. Note: Enter debits before credits. Event 1 Accounts Debit Credit Record entry Clear entry view consolidation entries b. Prepare the worksheet consolidation entry or entries needed at December 31, 20X6, to remove the effects of the Intercompany sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list A Record the entry to eliminate the gain on the truck and to correct the asset's basis. B Record the entry to adjust Accumulated Depreciation. asset's Pitcher Corporation purchased 60 percent of Softball Corporation's voting common stock on January 1, 20X1. On December 31, 20X5, Pitcher received $ 210,000 from Softball for a truck Pitcher had purchased on January 1, 20X2, for $300,000. The truck is expected to have a 10-year useful life and no salvage value. Both companies depreciate trucks on a straight-line basis. Required: a. Prepare the worksheet consolidation entry or entries needed at December 31, 20X5, to remove the effects of the Intercompany sale. Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. view transaction list Consolidation Worksheet Entries A Record the entry to eliminate the gain on the truck and to correct the asset's basis. Note: Enter debits before credits. Event 1 Accounts Debit Credit Record entry Clear entry view consolidation entries b. Prepare the worksheet consolidation entry or entries needed at December 31, 20X6, to remove the effects of the Intercompany sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list A Record the entry to eliminate the gain on the truck and to correct the asset's basis. B Record the entry to adjust Accumulated Depreciation. asset's

Answer rating: 100% (QA)

a Consolidation Worksheet Entries at December 31 20X5 Event 1 Accounts Debit Credit Truck 300000 Gai... View the full answer