Bradley Corporation, a parent company, sells equipment to its subsidiary on January 1, 2019, for $75,000. At the time, the equipment was reported on the parent's books at a net book value of $50,000. The remaining life of the equipment as of January 1, 2019, is 5 years, and straight-line depreciation, with no residual value, is used. At what net value should this equipment be reported on December 31, 2021, in the consolidated balance sheet (three years after the intercompany equipment sale)?

Bradley Corporation, a parent company, sells equipment to its subsidiary on January 1, 2019, for $75,000. At the time, the equipment was reported on the parent's books at a net book value of $50,000. The remaining life of the equipment as of January 1, 2019, is 5 years, and straight-line depreciation, with no residual value, is used. At what net value should this equipment be reported on December 31, 2021, in the consolidated balance sheet (three years after the intercompany equipment sale)?

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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