Question: Problem 2: Ponds owned a machine with an original cost of $100,000. It had been depreciated in the last 7 years on the straight-line method

Problem 2: Ponds owned a machine with an original cost of $100,000. It had been depreciated in the last 7 years on the straight-line method with 10 years of life and no salvage value. On January 1, 2017, Ponds sold this machine to SquareOne Company (a 75% owned subsidiary) for a price of S42,000 in cash. Thereafter, SquareOne provided for deprecation also on the straight-line method with 3 more years of life after the date of purchase and no salvage value. On Jan. 1, 2019, SquareOne sold the machine to an outside company for $15,000, Requirements: 1) Prepare the workpaper entries for the intercompany sale of machine in December 31, 2017. 2) Prepare the workpaper entries relating to the machine on December 31, 2018. 3) Prepare the workpaper entries relating to the machine on December 31, 2019

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