On Jan 2, 2016. Parent sells to its wholly owned investee equipment that had cost $150,000....
On Jan 2, 2016. Parent sells to its wholly owned investee equipment that had cost $150,000. The selling price was $142,800 and accumulated depreciation on that date was $62,000. The subsidiary depreciates the equipment over its remaining life of 8 years
Prepare the consolidation entries for 2018 related to the equipment sale. (The intercompany consolidation entry)
Homework Answers
Depreciation expense on Parent's books: ($150,000 - $62,000) / 8 = $11,000
Depreciation expense on Subsidiary's books: $142,800 / 8 = $17,850
Difference = $6,850
Retained Earnings $ 17,850
Equipment $ 17,850
Accumulated Depreciation $ 35,700
(to adjust beginning retained earnings and equipment (net) to consolidated balances)
Accumulated Depreciation $ 6,850
Depreciation expense $ 6,850
(to adjust depreciation expense to its consolidated balance)
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On Jan 2, 2016. Parent sells to its wholly owned investee
equipment that had cost $150,000....
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Question text Preparing the [I] consolidation journal entries for sale of depreciable assets - Equity method...
Question text
Preparing the
[I] consolidation journal entries for sale of depreciable
assets - Equity method
Assume that on January 1, 2011, a wholly owned subsidiary sells to
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question 2
Question 5
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Question text
Preparing the
[I] consolidation journal entries for sale of depreciable
assets - Equity method
Assume that on January 1, 2011, a wholly owned subsidiary sells to
its parent, for a sale price of $132,000, equipment that originally
cost $156,000. The subsidiary originally purchased the equipment on
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useful life (straight-line with no salvage value). The parent has
adopted the subsidiary's depreciation policy and depreciates the
equipment over the remaining...
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