90% equity of Stitch Company. On January 3, 2020, Stitch sold equipment (with original cost of P750,000 and carrying cost of P375,000) to Lilo for P540,000. The equipment have a remaining life of three (3) years and was depreciated using the straight-line method by both companies. In Lilo consolidated balance sheet as of December 31, 2020, the cost accumulated depreciation and book value should be reported at: A. COST: P750,000 ; ACCUMLATED DEPRECIATION
On January 1, 2020, Lilo Company purchased 90% equity of Stitch Company. On January 3, 2020, Stitch sold equipment (with original cost of P750,000 and carrying cost of P375,000) to Lilo for P540,000. The equipment have a remaining life of three (3) years and was
A. COST: P750,000 ; ACCUMLATED DEPRECIATION P500,000; NET BOOK VALUE P250,000
B. COST: P750,000 ; ACCUMLATED DEPRECIATION P500,000; NET BOOK VALUE P375,000
C. COST: P750,000 ; ACCUMLATED DEPRECIATION P750,000; NET BOOK VALUE P0
D. COST: P375,000 ; ACCUMLATED DEPRECIATION P375,000; NET BOOK VALUE P0
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