Gain on intercompany transfers of depreciable noncurrent assets Assume that a parent company owns a 100% controlling interest in its long-held subsidiary. On January 1, 2019, a parent company sold equipment to the subsidiary for $280,000. The equipment originally cost the parent $300,000, and accumulated depreciation through December 31, 2018 was $90,000. The parent depreciated the equipment assuming a 10-year useful life under the straight-line method and no salvage value. After the transfer, the subsidiary will depreciate the equipment for 7 years with no salvage value. Related to the transferred equipment, what is the net balance that will be reported in the December 31, 2019 consolidated balance sheet? $160,000 $180,000 $210,000 $240,000
Gain on intercompany transfers of depreciable noncurrent assets
Assume that a parent company owns a 100% controlling interest in its long-held subsidiary. On January 1, 2019, a parent company sold equipment to the subsidiary for $280,000. The equipment originally cost the parent $300,000, and
$160,000
$180,000
$210,000
$240,000
Note*** $160,000 was incorrect***
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