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On January 1, 20X7, Server Compan

On January 1, 20X7, Server Compan

FINANCIAL ACCOUNTING
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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On January 1, 20X7, Server Company purchased a machine with an expected economic life of five years. On January 1, 20X9, Server sold the machine to Patron Corporation and recorded the following entry: Cash Account Accumulated Depreciation Machine Gain on Sale of Equipment Debit O debited for $25,000. O debited for $1,000. O credited for $45,000. O debited for $15,000. 45,000 28,000 Credit 70,000 3,000 Patron Corporation holds 75 percent of Server's voting shares. Server reported net income of $50,000, and Patron reported income from its own operations of $100,000 for 20X9. There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer. Based on the preceding information, in the preparation of the 20X9 consolidated balance sheet, in the consolidation entry machine will be: Activate Windows Go to Settings to activ
Transcribed Image Text:On January 1, 20X7, Server Company purchased a machine with an expected economic life of five years. On January 1, 20X9, Server sold the machine to Patron Corporation and recorded the following entry: Cash Account Accumulated Depreciation Machine Gain on Sale of Equipment Debit O debited for $25,000. O debited for $1,000. O credited for $45,000. O debited for $15,000. 45,000 28,000 Credit 70,000 3,000 Patron Corporation holds 75 percent of Server's voting shares. Server reported net income of $50,000, and Patron reported income from its own operations of $100,000 for 20X9. There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer. Based on the preceding information, in the preparation of the 20X9 consolidated balance sheet, in the consolidation entry machine will be: Activate Windows Go to Settings to activ
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