On January 1, 2019, Ferrothorn Co. sold equipment, to its subsidiary, Klang Corp., for P115,000. The equipment had cost P125,000 and the balance in accumulated depreciation was P45,000. The equipment had an estimated remaining useful life of eight years and P0 salvage value. Both companies use straight-line depreciation. On their separate 2019 income statements, Ferrothorn and Klang reported depreciation expense of P84,000 and P60,000 respectively. The amount of depreciation expense on the consolidated income statement for 2019 would have been:
On January 1, 2019, Ferrothorn Co. sold equipment, to its subsidiary, Klang Corp., for P115,000. The equipment had cost P125,000 and the balance in accumulated depreciation was P45,000. The equipment had an estimated remaining useful life of eight years and P0 salvage value. Both companies use straight-line depreciation. On their separate 2019 income statements, Ferrothorn and Klang reported depreciation expense of P84,000 and P60,000 respectively. The amount of depreciation expense on the consolidated income statement for 2019 would have been:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2019, Ferrothorn Co. sold equipment, to its subsidiary, Klang Corp., for P115,000. The equipment had cost P125,000 and the balance in
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