Falcon Corporation sold equipment to its 80%-owned subsidiary, Rodent Corp., on January 1, 2005. Falcon sold the equipment for $110,000 when its book value was $85,000 and it had a 5- year remaining useful life with no expected salvage value. Separate balance sheets for Falcon and Rodent included the following equipment and accumulated depreciation amounts on December 31, 2005: Falcon Rodent Equipment $ 300,000 Less: Accumulated depreciation 750,000 (200,000) 550,000 $ 50,000) Equipment-net $ 250,000 Consolidated amounts for equipment and accumulated depreciation at December 31, 2005 were respectively (0 S (

Falcon Corporation sold equipment to its 80%-owned subsidiary, Rodent Corp., on January 1, 2005. Falcon sold the equipment for $110,000 when its book value was $85,000 and it had a 5- year remaining useful life with no expected salvage value. Separate balance sheets for Falcon and Rodent included the following equipment and accumulated depreciation amounts on December 31, 2005: Falcon Rodent Equipment $ 300,000 Less: Accumulated depreciation 750,000 (200,000) 550,000 $ 50,000) Equipment-net $ 250,000 Consolidated amounts for equipment and accumulated depreciation at December 31, 2005 were respectively (0 S (

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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