Consolidated amounts for equipment and accumulated depreciation at december 31, 2005 were respectively: Falcon Corporation sold equipment to its 80%-owned subsidiary,Rodent Corp., on January 1, 2005. Falcon sold the equipmentfor $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 thefollowing equipment and accumulated depreciation amounts onDecember 31, 2005:FalconRodentEquipment$750,000 $300,000Less: Accumulated depreciation200,000)50,000)Equipment-net$550,000 $250,000Consolidated amounts for equipment and accumulated depreciationat December 31, 2005 were respectively(

ing useful life with no expected salvage lance sheets for Falcon and Rodent include quipment and accumulated 2005: depreciation amoun Falcon Roden 750,000 $ 300,0 lated depreciation (50,0 t $ 550,000 $ 250,0 amounts for equipment and accumulated deprec. 31, 2005 were respectively S (200,000)

ing useful life with no expected salvage lance sheets for Falcon and Rodent include quipment and accumulated 2005: depreciation amoun Falcon Roden 750,000 $ 300,0 lated depreciation (50,0 t $ 550,000 $ 250,0 amounts for equipment and accumulated deprec. 31, 2005 were respectively S (200,000)

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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Question

Consolidated amounts for equipment and accumulated depreciation at december 31, 2005 were respectively:

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)
50,000)
Equipment-net
$
550,000 $
250,000
Consolidated amounts for equipment and accumulated depreciation
at December 31, 2005 were respectively
(

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