ADVANCED FIN. ACCT.(LL)-W/CONNECT
12th Edition
ISBN: 9781264582129
Author: Christensen
Publisher: MCG CUSTOM
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Textbook Question
Chapter 7, Problem 7.8E
Transfer of Depreciable Asset at Year-End
Pitcher Corporation purchased 60 percent of Softball Corporation’s voting commons stock on January 1, 20X1. On December 31, 20X5, Pitcher received $210,000 from Softball For a truck Pitcher had purchased on January 1, 20X2, For $300,000. The truck is expected to have 10-year useful life and no salvage value. Both companies
Required
- Givetheworksheet consolidation entry or entries needed at December 31, 20X5, to remove the effects of the intercompany sale.
- Give the worksheet consolidation entry or entries needed at December 31, 20X6, to remove the effect of the intercompany sale.
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Students have asked these similar questions
Assume that on January 2, 20X6, Sanoma of Michigan purchased fixtures for $8,100 cash, expecting the fixtures to remain in service for five years. Sanoma has depreciated the fixtures on
a double-declining-balance basis, with $1,400 estimated residual value. On October 31, 20X7, Sanoma sold the fixtures for $2,600 cash.
Requirement
1. Record both the depreciation expense on the fixtures for 20X7 and the sale of the fixtures. Apart from your journal entry, also show how to compute the gain or loss on Sanoma's disposal of
these fixtures.
Start by recording depreciation expense on the fixtures for 20X7. (Record debits first, then credits. Explanations are not required. Leave unused cells blank.)
Journal Entry
Date
Oct 31
Accounts
Debit
Credit
Dain's Diamond Bit Drilling purchased the following assets this year. Assume its taxable income for the year was $53,000
before deducting any $179 expense (assume no bonus depreciation).
Asset
Purchase Date
Original Basis
$ 90,000
January 25
July 25
April 22
Drill bits (5-year)
Drill bits (5-yoar)
Commercial building
95,000
220,000
a) What is the maximum amount of $179 expense Dain may deduct for the year?
b) What is Dain's maximum depreciation expense for the year (including $179 expense)?
c) If the January drill bits' original basis was $2,375,000, what is the maximum amount of $179 expense Dain may deduct
for the year?
d) If the January drill bits' basis was $2,495,000, what is the maximum amount of $179 expense Dain may deduct for the
year?
yy
Chapter 7 Solutions
ADVANCED FIN. ACCT.(LL)-W/CONNECT
Ch. 7 - Prob. 7.1QCh. 7 - Prob. 7.2QCh. 7 - Prob. 7.3QCh. 7 - Prob. 7.4QCh. 7 - Prob. 7.5QCh. 7 - Prob. 7.6QCh. 7 - Prob. 7.7QCh. 7 - Prob. 7.8QCh. 7 - Prob. 7.9QCh. 7 - Prob. 7.10Q
Ch. 7 - Prob. 7.11QCh. 7 - Prob. 7.12QCh. 7 - Prob. 7.13QCh. 7 - Prob. 7.14QCh. 7 - Prob. 7.15QCh. 7 - Prob. 7.16QCh. 7 - Prob. 7.17QCh. 7 - Prob. 7.18AQCh. 7 - Prob. 7.1CCh. 7 - Prob. 7.2CCh. 7 - Prob. 7.3CCh. 7 - Prob. 7.4CCh. 7 - Prob. 7.5CCh. 7 - Prob. 7.1.1ECh. 7 - Prob. 7.1.2ECh. 7 - Prob. 7.1.3ECh. 7 - Prob. 7.1.4ECh. 7 - Prob. 7.1.5ECh. 7 - Prob. 7.2.1ECh. 7 - Prob. 7.2.2ECh. 7 - Prob. 7.2.3ECh. 7 - Prob. 7.2.4ECh. 7 - Prob. 7.2.5ECh. 7 - Prob. 7.2.6ECh. 7 - Prob. 7.3ECh. 7 - Prob. 7.4ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Transfer of Depreciable Asset at Year-End Pitcher...Ch. 7 - Prob. 7.9ECh. 7 - Sale of Equipment to Subsidiary in Current Period...Ch. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.17ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.20ECh. 7 - Prob. 7.21ECh. 7 - Prob. 7.22ECh. 7 - Prob. 7.23AECh. 7 - Prob. 7.24PCh. 7 - Prob. 7.25PCh. 7 - Prob. 7.26PCh. 7 - Prob. 7.27PCh. 7 - Prob. 7.28.1PCh. 7 - Prob. 7.28.2PCh. 7 - Prob. 7.28.3PCh. 7 - Prob. 7.28.4PCh. 7 - Prob. 7.29PCh. 7 - Prob. 7.30PCh. 7 - Prob. 7.31PCh. 7 - Prob. 7.32PCh. 7 - Prob. 7.33PCh. 7 - Prob. 7.34PCh. 7 - Prob. 7.35PCh. 7 - Prob. 7.37PCh. 7 - Prob. 7.38PCh. 7 - Prob. 7.41AP
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