Business, 14.03.2020 05:07 queenkendra16
At the beginning of 2016, a subsidiary sold equipment, carried on its books at $3,000,000, net, to its parent for $5,000,000. The equipment had a remaining life of 20 years and straight-line depreciation is used. It is now the end of 2019, and the parent still owns the equipment. On the 2019 consolidation working paper, eliminations (I):
reduce the parent’s investment account by $1,700,000.
reduce the subsidiary’s beginning retained earnings account by $1,600,000.
reduce depreciation expense by $100,000.
reduce net equipment by $2,000,000.
Answers: 3
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At the beginning of 2016, a subsidiary sold equipment, carried on its books at $3,000,000, net, to i...
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