Pam Corporation holds 70 percent ownership of Spray Enterprises. On December 31, 20X6, Spray paidPam $31,000 for a truck that Pam had purchased for $36,000 on January 1, 20X2. The truck wasconsidered to have a 10-year life from January 1, 20X2, and no residual value. Both companiesdepreciate equipment using the straight-line method.a. Prepare the worksheet consolidation entry or entries needed on December 31, 20X6, to removethe effects of the intercompany sale.Gain on Sale of truckTruckAccumulated depreciationDebitCreditb. Prepare the worksheet consolidation entry or entries needed on December 31, 20X7, to removethe effects of the intercompany sale.Investment in SprayTruckAccumulated depreciationDebitCreditDebitCreditDepreciation ExpenseAccumulated depreciation

Reference; Baydoun, N., Sulaiman, M., Willett, R. J., & Ibrahim, S. (2018). Principles of…

Answered: Pam Corporation holds 70 percent…

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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Sea Ltd (the parent) sold an item of plant to Bill Ltd (the subsidiary) for $12,000 on 31/12/2021. The total carrying amount was $8,000 with a remaining useful life of 6 years. 1) Prepare the consolidation journal entries for this item at its transaction date.
On January 1, 2020, Parent Corporation purchased equipment from its 70% owned subsidiary for $360,000. The total useful life of the equipment was 15 years when Sub originally purchased it on January 1, 2015 for $450,000. Both Parent and Sub use straight- line depreciation. Required: a. Prepare the December 31, 2020 consolidation entry in general journal format. 5. Prepare the December 31, 2023 consolidation entry in general journal format. c. Repeat requirement (b), assuming instead that this had been a downstream sale.
Please help me with show all calculation thanku
On January 1, 20X1, Amber Products Corporation sold land costing $200,000 to its subsidiary, Jerry Interiors Corporation, for $240,000. Jerry still held the land at the end of 20X2. Jerry sold the land to a nonaffiliate on March 31, 20X3, for $255,000. Prepare the consolidation entry related to the land at the end of 20X2. Debit Land for $40,000; Credit Gain on Sale of Land for $40,000 Debit Investment in Jerry for $40,000; Credit Land for $40,000 Debit Gain on Sale of Land for $40,000; Credit Land for $40,000 bit Land for $40,000; Credit Investment in Jerry for $40,000.
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
Please help me
stan Itd sold inventories during the current period to its wholly owned susidiary. marcia Itd for $45000. These items previously cost stan Itd $37500. Marcia Itd subsequently sold half the items to an external entity for $27500. The remainder of the inventory was sold outside the group the following year. The tax Rate is 30%. required prepare the consolidation journal entries for the current and following year
On January 1, Year 1, East Company purchased West Company. East Company paid $670,000 cash and assumed all of West Company's liabilities. West's books showed tangible assets of $578,000, liabilities of $54,000, and equity of $632,000. An appraiser assessed the fair market value of the tangible assets at $622,000 at the date of acquisition. On December 31, Year 4 East determines that the goodwill suffered a $32,000 permanent impairment. However, on December 31, Year 6 East estimated that it had recovered $12,000 of the impairment that had previously been considered to be permanent impairment. Based on this information, the book value of the goodwill shown on the December 31, Year 6 balance sheet is: Multiple Choice O O O $102,000. $134,000. $54,000. $70,000.
On January 1, 2021, ABC Company sold machinery to MNO, its wholly-owned subsidiary for P450,000. The Equipment had cost ABC P560,000. The book value at the time of sale was P230,000. ABC used a 5-year life, with a salvage value o P10,000 and uses sum of the years digits depreciation. MNO will adopt this practice. On the consolidated statement of financial position at December 31, 2021, in what amount should the deprecation expense be stated at?
On January 1, 2021, ABC Company sold machinery to MNO, its wholly-owned subsidiary for P450,000. The Equipment had cost ABC P560,000. The book value at the time of sale was P230,000. ABC used a 5-year life, with a salvage value o P10,000 and uses sum of the years digits depreciation. MNO will adopt this practice. On the consolidated statement of financial position at December 31, 2021, the deprecation expense should be stated at: Your answer
Sulu Company is 80% owned by Palawan, Inc. On January 1, 2011, Sulu paid P100,000 for a truck with an expected life of 10 years with no residual value. Sulu sold the truck to Palawan, on January 1, 2017. During the preparation of the consolidation working paper for 2017, the following working paper elimination entry for the intercompany sale of trucks was made: Truck 48,000 Gain on sale of truck 12,000 Depreciation Expense 3,000 Accumulated Depreciaton 57,000 What amount did palawan pay sulu for the truck? Please explain.

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