On January 1, 20X4, Gold Company purchased a computer with an expected economic life of five years. On January 1, 20X6, Gold sold the computer to TLK Corporation and recorded the fa Consolidation Worksheet Entries Cash Accumulated Depreciation Computer Equipment Gain on Sale of Equipment Debit Credit 39,000 16,000 40,000 15,000 TLK Corporation holds 60 percent of Gold's voting shares. Gold reported net income of $ 45,000 including the gain on the sale of equipment, and TLK reported income from its own operatio life of the equipment as a result of the intercompany transfer In the preparation of the 20X6 consolidated balance sheet, computer equipment will be Multiple Choice
On January 1, 20X4, Gold Company purchased a computer with an expected economic life of five years. On January 1, 20X6, Gold sold the computer to TLK Corporation and recorded the fa Consolidation Worksheet Entries Cash Accumulated Depreciation Computer Equipment Gain on Sale of Equipment Debit Credit 39,000 16,000 40,000 15,000 TLK Corporation holds 60 percent of Gold's voting shares. Gold reported net income of $ 45,000 including the gain on the sale of equipment, and TLK reported income from its own operatio life of the equipment as a result of the intercompany transfer In the preparation of the 20X6 consolidated balance sheet, computer equipment will be Multiple Choice
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 20X4, Gold Company purchased a computer with an expected economic life of five years. On January 1, 20X6, Gold sold the computer to TLK Corporation and recorded the following entry
Consolidation Worksheet Entries
Cash
Accumulated Depreciation
Computer Equipment
Gain on Sale of Equipment
Debit
39,000
Credit
16,000
40,000
15,000
TLK Corporation holds 60 percent of Gold's voting shares. Gold reported net income of $ 45,000 including the gain on the sale of equipment, and TLK reported income from its own operations of $ 85,000 for 20X6. There is no change in the estimated economic
life of the equipment as a result of the intercompany transfer.
In the preparation of the 20X6 consolidated balance sheet, computer equipment will be
Multiple Choice
Credited for $24,000.
O
Debited for $1,000.
Debited for $15,000
Debited for $ 40,000
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