On 31/03/2022, Sea Ltd (the parent) sold equipment with a carrying amount of $290,000 to Bill Ltd for $275,000. The equipment initally had a useful life of ten years and was purchased for $600,000. The remaining useful life of the equipment is 7.25 years depreciated on a straight line basis. 1) Prepare the consolidation journal entries for this item at its transaction date.
On 31/03/2022, Sea Ltd (the parent) sold equipment with a carrying amount of $290,000 to Bill Ltd for $275,000. The equipment initally had a useful life of ten years and was purchased for $600,000. The remaining useful life of the equipment is 7.25 years depreciated on a straight line basis. 1) Prepare the consolidation journal entries for this item at its transaction date.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On 31/03/2022, Sea Ltd (the parent) sold equipment with a carrying amount of $290,000 to Bill Ltd for $275,000. The equipment initally had a useful life of ten years and was purchased for $600,000. The remaining useful life of the equipment is 7.25 years
1) Prepare the consolidation
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