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 16,200 5,400 Equipment Depreciation Expense Accumulated Depreciation 86,400 5,400 102,600 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 16,200 5,400 Equipment Depreciation Expense Accumulated Depreciation 86,400 5,400 102,600 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

See similar textbooks

Similar questions

Which one of the following is the proper dollar value of existing equipment to use in replacement analysis? A. Original cost B. Present market value if sold C. Present trade-in value D. Present book value E. Present market value if sold minus removal and selling expenses
Prove that Homotheticity is required for the method of representative agent method to find the asset pricing. Otherwise, you have to use upper convultion to find the representative agent utility
what will be the Market Leasing Assumptions with Renewal Probabilities?
How does Leasing offer flexibility and a lower cost when disposing of the asset?
How can you apply the concepts of “Time Value of Money” in deciding for Rent-Buy-Lease of Equipment?
Why should the total costs of the machine be viewed as an asset and allocated against the future revenue that the machine will generate?
how to calculate gain on the sale of equipment
how to get amortization?
What would the result of Capitalizing the purchase cost over time?
Which best defines Market Value? Group of answer choices: Whatever the market will bear. Most probable selling price, assuming “normal” sale conditions What an investor is willing to pay for a property. The appraised value.
Explain the process of Frozen Investment.