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

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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