A parent company sells machinery to its subsidiary on January 1, 2020, for $150,000. The machinery had a net book value of $100,000 on the parent's books at the time of sale. The remaining useful life of the machinery is 5 years, and straight-line depreciation with no residual value is used. At what net value should this machinery be reported on December 31, 2022, consolidated balance sheet (two years after the intercompany machinery sale)? a. $90,000 b. $60,000 c. $70,000 d. $80,000

A parent company sells machinery to its subsidiary on January 1, 2020, for $150,000. The machinery had a net book value of $100,000 on the parent's books at the time of sale. The remaining useful life of the machinery is 5 years, and straight-line depreciation with no residual value is used. At what net value should this machinery be reported on December 31, 2022, consolidated balance sheet (two years after the intercompany machinery sale)? a. $90,000 b. $60,000 c. $70,000 d. $80,000

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

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 11P

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