Blank Corporation owns 60% of stocks of Grand Corp. On December 31, 2020, Blank paid Grand P276,000 for dump truck purchased by Grand on January 1, 2018. Both companies uses straight line method of depreciation. The eliminating entry included in the working paper at December 31, 2020 was: Truck-24, 000 Dr. Gain on Sale - 36,000 Dr. Accumulated Depreciation - 60,000 Cr. What is the economic life of the truck on January 1, 2018?
Blank Corporation owns 60% of stocks of Grand Corp. On December 31, 2020, Blank paid Grand P276,000 for dump truck purchased by Grand on January 1, 2018. Both companies uses straight line method of depreciation. The eliminating entry included in the working paper at December 31, 2020 was: Truck-24, 000 Dr. Gain on Sale - 36,000 Dr. Accumulated Depreciation - 60,000 Cr. What is the economic life of the truck on January 1, 2018?
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
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 3RE: Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not...
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