1. Pond sold a building to skate for $78,000 on December 31, 20X7. Pond had purchased the...
Question:
1. Pond sold a building to skate for $78,000 on December 31, 20X7. Pond had purchased the building for $138,000 and was depreciating it on the straight-line basis over 25 years. At the time of sale, Pond reported accumulated depreciation of $75,000 and a remaining life of 10 years. Assume Pond uses the fully adjusted equity method.
2. On July 1, 20X6, Skate sold land that had purchased for $22,000 to Pond for $35,000.Pond is planning to build a new warehouse on the property prior to the end of 20X9.
3. Skate issued $100,000, par value 10-year bonds with a coupon rate of 10 percent onJanuary 1, 20X5, at $95,000. On December 31, 20X7, Pond purchases $40,000 par valueof Skate’s bonds for $42,800. Both companies amortize the bond premiums and discountson a straight-line basis. Interest payments are made on July 1 and January 1.
4. Pond and Skate paid dividends of $30,000 and $10,000, respectively, in 20X8.
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen