ABC owns 75% of DEF Corp. On January 1, 2021, DEF purchased for P180,000 an equipment with an expected life of 10 years and no residual value. DEF sold the equipment to ABC on January 1, 2027. During the preparation of the consolidation working paper for 2028 the following working papers elimination entry tor the intercompany sale of machine was made: Retained Earnings-DEF No-Controlling Interest Equipment Depreciation Expense 16,200 5,400 86,400 5,400 Accumulated Depreciation 102,600 Compute for the purchase price of ABC for the equipment.

ABC owns 75% of DEF Corp. On January 1, 2021, DEF purchased for P180,000 an equipment with an expected life of 10 years and no residual value. DEF sold the equipment to ABC on January 1, 2027. During the preparation of the consolidation working paper for 2028 the following working papers elimination entry tor the intercompany sale of machine was made: Retained Earnings-DEF No-Controlling Interest Equipment Depreciation Expense 16,200 5,400 86,400 5,400 Accumulated Depreciation 102,600 Compute for the purchase price of ABC for the equipment.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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