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Pea Company purchased 70 percent of Split Company's stock approximately 20 years ago On December 31, 2008. Pee purchased a building from Split for $360,000 Split had purchased the building on January 1, 20x1, at a cost of $460.000 and used straight line depreciation on an expected life of 20 years. The asset's total estimated economic life is unchanged as a result of the intercompany sale Required a What amount of depreciation expense on the building will Pea report for 20x9? Anmaal depreciation expense reported by Pea b. What amount of depreciation expense would Split have reported for 20x9 if it had continued to own the building! Annual depreciation expense reported by Spit c. Prepare the consolidation entry or entries needed to eliminate the effects of the intercompany building transfer in preparing a full set of consolidated financial statements at December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.)

Pea Company purchased 70 percent of Split Company's stock approximately 20 years ago On December 31, 2008. Pee purchased a building from Split for $360,000 Split had purchased the building on January 1, 20x1, at a cost of $460.000 and used straight line depreciation on an expected life of 20 years. The asset's total estimated economic life is unchanged as a result of the intercompany sale Required a What amount of depreciation expense on the building will Pea report for 20x9? Anmaal depreciation expense reported by Pea b. What amount of depreciation expense would Split have reported for 20x9 if it had continued to own the building! Annual depreciation expense reported by Spit c. Prepare the consolidation entry or entries needed to eliminate the effects of the intercompany building transfer in preparing a full set of consolidated financial statements at December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.)

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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Pea Company purchased 70 percent of Split Company's stock approximately 20 years ago On December 31, 2008. Pee purchased a building from Split for $360,000. Split had purchased the building on January 1, 20x1, at a cost of $460.000 and used straight line depreciation on an expected life of 20 years. The asset's total estimated economic life is unchanged as a result of the intercompany sale Required a What amount of depreciation expense on the building will Pea report for 20x9? Annual depreciation expense reported by Pea b. What amount of depreciation expense would Split have reported for 20X9 if it had continued to own the building? Annual depreciation expense reported by Spit c. Prepare the consolidation entry or entries needed to eliminate the effects of the intercompany building transfer in preparing a full set of consolidated financial statements at December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) vie transaction list
Transcribed Image Text:Pea Company purchased 70 percent of Split Company's stock approximately 20 years ago On December 31, 2008. Pee purchased a building from Split for $360,000. Split had purchased the building on January 1, 20x1, at a cost of $460.000 and used straight line depreciation on an expected life of 20 years. The asset's total estimated economic life is unchanged as a result of the intercompany sale Required a What amount of depreciation expense on the building will Pea report for 20x9? Annual depreciation expense reported by Pea b. What amount of depreciation expense would Split have reported for 20X9 if it had continued to own the building? Annual depreciation expense reported by Spit c. Prepare the consolidation entry or entries needed to eliminate the effects of the intercompany building transfer in preparing a full set of consolidated financial statements at December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) vie transaction list
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