A parent company sells equipment solve this accounting questions A parent company sells equipment to its subsidiary on January 1, 2018,for $90,000. At the time, the equipment was reported on the parent'sbooks at a net book value of $60,000. The remaining life of theequipment as of January 1, 2018, is six years, and straight-linedepreciation, no residual value is used.At what net value should this equipment be reported on December 31,2020, consolidated balance sheet (three years after the intercompanyequipment sale)?a. $45,000b. $90,000c. $30,000d. $40,000

Step 1: Define Net Book Value of Fixed AssetsThe net book value refers to the cost at which a fixed…

Answered: A parent company sells equipment to its…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

See similar textbooks

Similar questions

On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received $12,000,000 in net assets. In 2016, the market value of the goodwill obtained from Branta Corp. was valued at $4,000,000, but in 2017 it dropped to $2,000,000. Prepare the journal entry for the creation of goodwill and the entry to record any impairments to it in subsequent years.
A parent company sells machinery solve this accounting questions
On January 1, 2019 Pink Corp. sold a machine for $7,400 to slink Corp., its wholly-owned subsidiary. Pink paid $13,00 for this machine. On January 1, 2019, accumulated depreciation was $4,500. The remaining useful life is assumed to be 5 years. Straight line depreciation is used by both companies. In pink's December 31, 2019 consolidated balance sheet, at what amount should accumulated depreciation be reported?
On January 1, 2021, ABC Company sold machinery to MNO, its wholly-owned subsidiary for P450,000. The Equipment had cost ABC P560,000. The book value at the time of sale was P230,000. ABC used a 5-year life, with a salvage value o P10,000, and uses sum of the year's digits depreciation. MNO will adopt this practice. On the consolidated statement of financial position at December 31, 2021, the deprecation expense should be stated at:
Hi expert please give me answer general accounting
On January 1, 2020, Pink Corp. 'sold' a machine for $8000 to Slink Corp., its wholly-owned subsidiary. Pink paid $18000 for this machine. At January 1, 2020, accumulated depreciation was $10000. The remaining useful life is assumed to be 5 years. Straight line depreciation is used by both companies. In Pink's December 31, 2020 consolidated balance sheet, at what amount should ACCUMULATED DEPRECIATION be reported? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000.
At what net value should this equipment be recorded?
Grand Champion Inc. purchased America’s Sweethearts Corporation On January 1, 2019. At the time, America’s Sweethearts had the following assets and liabilities (stated at fair value):
On January 2, 2019, ABC Co. acquired 80% of the outstanding common stock of Shade Co. for ₱1,344,000 with no goodwill resulting from the acquisition. The following selected account balances were taken from the accounting records of XYZ Co. Details shown doe XYZ Co. in the image. The building has an estimated useful life of 10 years and the equipment is expected to last for 5 years. For the year 2019, ABC Co. reported net income from own operations of ₱2,240,000 and XYZ Co. reported ₱600,000 net income from own operations. ABC Co. accounts its investment in XYZ Co. using the cost method. What is the consolidated income statement for the year 2019. NCI in the consolidated FS for the year 2019.
On January 1, 2020, Pink Corp. 'sold' a machine for $6000 to Slink Corp., its wholly-owned subsidiary. Pink paid $18000 for this machine. At January 1, 2020, accumulated depreciation was $6000. The remaining useful life is assumed to be 10 years. Straight line depreciation is used by both companies. In Pink's December 31, 2020 consolidatedincome statement, at what amount should DEPRECIATION EXPENSE be reported? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000.
A non-current asset with a carrying amount of $2400 was sold by the parent to its subsidiary for $1000 on 1 January 2019. The subsidiary intended to use this item as inventory, being a seller of second-hand goods. Both entities charged depreciation at the rate of 25% p.a. on the diminishing balance on non-current assets. The item was still on hand at 30 June 2019. Assume an income tax rate of 30%. Prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019 Answer: Loss on sale Dr $ 1400 Your last answer was interpreted as follows: 1400 Inventory ÷ Cr Your last answer was interpreted as follows: 1400 Accumulated depreciation ÷ Dr $ 1400 ÷ $ 350 Your last answer was interpreted as follows: 350 Depreciation Expense ÷ Cr ÷ $ 350 Your last answer was interpreted as follows: 350
On January 2, 2019, Peace Co. acquired 80% of the outstanding common stock of Shade Co. for ₱1,344,000 with no goodwill resulting from the acquisition. The following selected account balances were taken from the accounting records of Shade Co. BV FV Building 12,000,000 12,400,000 Machinery 620,000 500,000 The building has an estimated useful life of 10 years and the equipment is expected to last for 5 years. For the year 2019, Peace Co. reported net income from own operations of ₱2,240,000 and Shade Co. reported ₱600,000 net income from own operations. Peace Co. accounts its investment in Shade Co. using the cost method. What is the consolidated income statement for the year 2019.

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Auditing: A Risk Based-Approach (MindTap Course L…

Accounting

ISBN:

9781337619455

Author:

Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Auditing: A Risk Based-Approach (MindTap Course L…

Accounting

ISBN:

9781337619455

Author:

Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS