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 $ 750,000 $ 300,000 Less: Accumulated depreciation (200,000) 550,000 Equipment-net $ 250,000 Consolidated amounts for equipment and accumulated depreciation. at December 31, 2005 were respectively ՄԴ $ 50,000)

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 $ 750,000 $ 300,000 Less: Accumulated depreciation (200,000) 550,000 Equipment-net $ 250,000 Consolidated amounts for equipment and accumulated depreciation. at December 31, 2005 were respectively ՄԴ $ 50,000)

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 32CE

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