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Business, 15.04.2020 00:22 issaaamiaaa15

Grey Corp owns 57% of Blue Company. On January 1, 2017 Grey sold Blue a machine for $68,766. Immediately prior to the sale, the machine was recorded on Grey's books at a net book value of $29,299. Prior to the sale, Grey was depreciating the machine on a straight-line basis with 7 years of remaining life and no salvage value. Blue plans to adopt the same depreciation assumptions as Grey. What elimination adjustments with respect to this sale must be made to consolidated net income in 2018 (ignoring income tax effects)?

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Grey Corp owns 57% of Blue Company. On January 1, 2017 Grey sold Blue a machine for $68,766. Immedia...

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