Question: Why option B is not correct and why option D is correct On January 1, 2016, P Corporation sold equipment with a 3-year remaining life

Why option B is not correct and why option D is correct

On January 1, 2016, P Corporation sold equipment with a 3-year remaining life and a book value of $40,000 to its 70% owned subsidiary for a price of $46,000. In the consolidated workpapers for the year ended December 31, 2017, an elimination entry for this transaction will include a: a) debit to Equipment for $6,000. b) debit to Gain on Sale of Equipment for $6,000. c) credit to Depreciation Expense for $6,000. d) debit to Accumulated Depreciation for $4,000. Answer: d

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

P4-5 Workpapers in year of acquisition (excess recorded for inventory, building, equipment, trademarks, and goodwill) Pam Corporation acquired a 70 percent interest in Sun Corporation's outstanding...

Pam Corporation acquired a 70 percent interest in Sun Corporation's outstanding voting common stock on January 1, 2016, for $980,000 cash. The stockholders' equity (book value) of Sun on this date...

Question: Pam Corporatioh acquired a7u percerit ieres Pam Corporation acquired a 70 percent interest in Sun Corporation's outstanding voting common stock on January 1, 2016, for $980,000 cash. The...

I am having trouble with this problem getting the correct answer. Any help would be appreciated. On January 1, 2015, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $240,000 in...

The consolidated depreciation expense is: a. P4,680,000 b. P4,440,000 c. P4,644,000 d. P4,356,000 8. FB Corporation acquired an 80% interest in Twitter Corporation on January 1,200 On January 1,...

show all workings clearly please! Question 1 Statement of Profit or Loss for the year ended 30 June 2019 Barnier ple Varadkar Ltd Johnson Ltd '000 '000 '000 Revenue 9,000 6,000 4,500 Cost of sales...

attached are some practice questions i could use help with Accountancy 332/532 Exam 1 Practice Questions Summer 2016 Select the best answer for each question and type the answer in capital letters on...

i will upvote Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $470,000. Scenic reported net income of $280,000....

Slow-moving neutrons have a much larger absorption rate in 235U than fast neutrons produced by 235U* fission in a nuclear reactor. For that reason, reactors consist of moderators to slow down...

Joe ltd is a housing construction company. it is common for clients.To pay the contract price in advance.This is then recorded in the unearned revenue account. Discuss the nature of temporary...

4.20 A continuous random variable X has the density function f(x) = 12 e x/2, x>0, 0, elsewhere. Find the expected value of g(X) = eX/4 .

Which of Hofstedes dimensions analyzed the relationship between work and gender roles? Power distance Masculinity versus femininity Long-term orientation Time orientation 2. Hofstede's study isolated...

=+4. To what extent do you think there is a business model for microfinance in the developed economies?

=+What do you think about the CDFI Fund, establish in 1994?

=+3. Have a look at the article Community Investing Pays181 on the Socialfunds.com Web site (http://www.socialfunds.com/news/article. cgi/article945.html). Does the author make a convincing case that...