A1 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 recordedthe following entry:CashAccountAccumulated DepreciationMachineGain on Sale of EquipmentDebitO debited for $25,000.O debited for $1,000.O credited for $45,000.O debited for $15,000.45,00028,000Credit70,0003,000Patron 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 isno 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 consolidatedbalance sheet, in the consolidation entry machine will be:Activate WindowsGo to Settings to activ

Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Answered: On January 1, 20X7, Server Compan

Business

Accounting

On January 1, 20X7, Server Compan

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5PA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...

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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 Odebited for $25,000. O debited for $1,000. O credited for $45,000. Odebited 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:
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 O debited for $25,000. O debited for $1,000. O credited for $45,000. Debit debited for $15,000. 45,000 28,000 Credit 70,000 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: 3,000
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