On January 1, 2020, Hockey Unlimited Inc. purchased 2,500 of the 10,000 outstanding common shares of Goal Corporation for $14,000 cash obtaining significant influence of the company. Hockey Unlimited intends to hold the securities indefinitely. On January 1, 2020, the balance sheet of Goal Corporation reflected depreciable assets with a net book value of $30,000, and a 10-year remaining useful life. The fair value of the depreciable assets is 533,000 on January 1, 2020. Record the adjusting entry for depreciation expense on December 31, 2020, using he straight-line depreciation method.

On January 1, 2020, Hockey Unlimited Inc. purchased 2,500 of the 10,000 outstanding common shares of Goal Corporation for $14,000 cash obtaining significant influence of the company. Hockey Unlimited intends to hold the securities indefinitely. On January 1, 2020, the balance sheet of Goal Corporation reflected depreciable assets with a net book value of $30,000, and a 10-year remaining useful life. The fair value of the depreciable assets is 533,000 on January 1, 2020. Record the adjusting entry for depreciation expense on December 31, 2020, using he straight-line depreciation method.

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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