Pillar Company owns 70 percent of Salt Company's outstanding common stock. On December 31, 20X8, Salt sold equipment to Pillar at a price in excess of Salt's carrying amount but less than its original cost. On a consolidated balance sheet at December 31, 20X8, the carrying amount of the equipment should be reported at: O Salt's original cost. O Pillar's original cost. O Pillar's original cost less 70 percent of Salt's recorded gain. O Pillar's original cost less Salt's recorded gain.

Pillar Company owns 70 percent of Salt Company's outstanding common stock. On December 31, 20X8, Salt sold equipment to Pillar at a price in excess of Salt's carrying amount but less than its original cost. On a consolidated balance sheet at December 31, 20X8, the carrying amount of the equipment should be reported at: O Salt's original cost. O Pillar's original cost. O Pillar's original cost less 70 percent of Salt's recorded gain. O Pillar's original cost less Salt's recorded gain.

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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