Zest Co. owns 100% of Cinn, Inc. On January 2, Zest sold equipment with an original cost
Fantastic news! We've Found the answer you've been seeking!
Question:
Zest Co. owns 100% of Cinn, Inc. On January 2, Zest sold equipment with an original cost of $80,000 and a carrying amount of $48,000 to Cinn for $72,000. Zest had been depreciating the equipment over a 5-year period using straight-line depreciation with no residual value. Cinn is using straight-line depreciation over 3 years with no residual value. In Zest's December 31 consolidating worksheet, by what amount should depreciation expense be decreased?
A. $0
B. $8,000
C. $16,000
D. $24,000
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date: