Howard Corp. owned 80% of the outstanding common stock of Zest Inc. On January 1, 20X1, Howard acquired a building with a ten-year life for $500,000. No salvage value was anticipated and the building was to be depreciated on the straight-line basis. On January 1, 20X3, Howard sold this building to Zest for $448,000. At that time, the building had a remaining life of eight years but still no expected salvage value. Which of the following is the consolidation entry to adjust depreciation expense and accumulated depreciation for the excess depreciation? O Debit Accumulated Depreciation at $4,800 and credit Depreciation Expense at $4,800 O Debit Depreciation Expense at $6,000 and credit Accumulated Depreciation at $6,000 O Debit Accumulated Depreciation at $6,000 and credit Depreciation Expense at $6,000 O Debit Depreciation Expense at $4,800 and credit Accumulated Depreciation at $4,800
Howard Corp. owned 80% of the outstanding common stock of Zest Inc. On January 1, 20X1, Howard acquired a building with a ten-year life for $500,000. No salvage value was anticipated and the building was to be depreciated on the straight-line basis. On January 1, 20X3, Howard sold this building to Zest for $448,000. At that time, the building had a remaining life of eight years but still no expected salvage value. Which of the following is the consolidation entry to adjust depreciation expense and accumulated depreciation for the excess depreciation? O Debit Accumulated Depreciation at $4,800 and credit Depreciation Expense at $4,800 O Debit Depreciation Expense at $6,000 and credit Accumulated Depreciation at $6,000 O Debit Accumulated Depreciation at $6,000 and credit Depreciation Expense at $6,000 O Debit Depreciation Expense at $4,800 and credit Accumulated Depreciation at $4,800
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
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 7RE: Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of...
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