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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Accumulated Depreciaton 57,000
What amount did palawan pay sulu for the truck? Please explain.
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