Retained Earnings-DEF No-Controlling Interest 16,200 5,400 Equipment Depreciation Expense Accumulated Depreciation 86,400 5,400 102,600 Compute for the purchase price of ABC for the equipment.
Retained Earnings-DEF No-Controlling Interest 16,200 5,400 Equipment Depreciation Expense Accumulated Depreciation 86,400 5,400 102,600 Compute for the purchase price of ABC for the equipment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
ABC owns 75% of DEF Corp. On January 1, 2021, DEF purchased for P180,000 an equipment with an expected life of 10 years and no residual value. DEF sold the equipment to ABC on January 1, 2027. During the preparation of the consolidation working paper for 2028 the following working papers elimination entry tor the intercompany sale of machine was made:
Transcribed Image Text:Retained Earnings-DEF
No-Controlling Interest
16,200
5,400
Equipment
Depreciation Expense
Accumulated Depreciation
86,400
5,400
102,600
Compute for the purchase price of ABC for the equipment.
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