On January 1, year 1, P Company sold a machine for P900,000 to S Company, its wholly owned subsidiary. P paid P1,100,000 for this machine, which had accumulated depreciation of P250,000. P estimated a P100,000 salvage value and depreciated the machine on the straight-line method over twenty years, a policy which S continued. In P's December 31, year 1 consolidated balance sheet, this machine should be included in cost and accumulated depreciation as
On January 1, year 1, P Company sold a machine for P900,000 to S Company, its wholly owned subsidiary. P paid P1,100,000 for this machine, which had accumulated depreciation of P250,000. P estimated a P100,000 salvage value and depreciated the machine on the straight-line method over twenty years, a policy which S continued. In P's December 31, year 1 consolidated balance sheet, this machine should be included in cost and accumulated depreciation as
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, year 1, P Company sold a machine for
P900,000 to S Company, its wholly owned subsidiary. P paid
P1,100,000 for this machine, which had accumulated
depreciation of P250,000. P estimated a P100,000 salvage
value and depreciated the machine on the straight-line
method over twenty years, a policy which S continued. In P's
December 31, year 1 consolidated balance sheet , this
machine should be included in cost and accumulated
depreciation as
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