Based on the information provided, the gain on the sale of the equipment eliminated in the consolidated financial statements for 20X4 is
Neptune Corporation owns 70 percent of Pluto Company’s stock. On January 1, 20X4, Neptune sold a piece of equipment to Pluto for $64,800. Neptune had purchased this equipment on January 1, 20X1, for $63,000. The equipment’s original 15-year estimated total economic life remains unchanged. Both companies use straight-line
Based on the information provided, the gain on the sale of the equipment eliminated in the consolidated financial statements for 20X4 is
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$1,800 |
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$8,050 |
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$10,150 |
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$14,400
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Based on the information provided, while preparing the 20X4 consolidated income statement, depreciation expense will be
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debited for $600 in the consolidation entries. |
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credited for $600 in the consolidation entries. |
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debited for $1,200 in the consolidation entries. |
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credited for $1,200 in the consolidation entries. |
Based on the information provided, in the preparation of the 20X5 consolidated income statement, depreciation expense will be
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debited for $600 in the consolidation entries. |
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credited for $600 in the consolidation entries. |
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debited for $1,200 in the consolidation entries. |
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credited for $1,200 in the consolidation entries. |
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