Victor Co. owned 80% of the voting common stock of Wilson Co. On January 3, 20X2, Victor sold equipment to Wilson for $161,000. The equipment cost Victor $200,000. At the time of the transfer, the balance in accumulated depreciation was $60,000. Victor estimated a zero salvage value and depreciated the equipment using the straight-line method over 10 years, a policy that Wilson continued. In Victor's December 31, 20X2 consolidated balance sheet, this equipment should be included in fixed-asset cost and accumulated depreciation as O Cost: $200,000; Accumulated Depreciation: $83,000 O Cost: $200,000; Accumulated Depreciation: $80,000 O Cost: $161,000; Accumulated Depreciation: $23,000

Victor Co. owned 80% of the voting common stock of Wilson Co. On January 3, 20X2, Victor sold equipment to Wilson for $161,000. The equipment cost Victor $200,000. At the time of the transfer, the balance in accumulated depreciation was $60,000. Victor estimated a zero salvage value and depreciated the equipment using the straight-line method over 10 years, a policy that Wilson continued. In Victor's December 31, 20X2 consolidated balance sheet, this equipment should be included in fixed-asset cost and accumulated depreciation as O Cost: $200,000; Accumulated Depreciation: $83,000 O Cost: $200,000; Accumulated Depreciation: $80,000 O Cost: $161,000; Accumulated Depreciation: $23,000

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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