Please help me with show all calculation thanku On Jan 2, 2016. Parent sells to its whollyowned investee equipment that had cost$150,000. The selling price was $142,800and accumulated depreciation on that datewas $62,000. The subsidiary depreciatesthe equipment over its remaining life of 8yearsPrepare the consolidation entries for 2018related to the equipment sale. (Theintercompany consolidation entry)

Consolidation entry refers to the process of combining the financial statements of two or more…

Answered: On Jan 2, 2016. Parent sells to its…

On Jan 2, 2016. Parent sells to its wholly owned investee equipment that had cost $150,000. The selling price was $142,800 and accumulated depreciation on that date

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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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Please help me with show all calculation thanku

On Jan 2, 2016. Parent sells to its wholly
owned investee equipment that had cost
$150,000. The selling price was $142,800
and accumulated depreciation on that date
was $62,000. The subsidiary depreciates
the equipment over its remaining life of 8
years
Prepare the consolidation entries for 2018
related to the equipment sale. (The
intercompany consolidation entry)

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