Pluto Corporation owns 70 percent of Saturn Company's stock. On July 1, 20X4, Pluto sold a piece of equipment to Saturn for $56,350. Pluto had purchased this equipment on January 1, 20X1, for $63,000. The equipment's original 15-year estimated total economic life remains unchanged. Both companies use straight-line depreciation. The equipment's residual value is considered negligible.Based on the information provided, in the preparation of the 20X4 consolidated financial statements, equipment will be ________ in the consolidation entries.
A. debited for $56,350
B. debited for $63,000
C. credited for $63,000
D. debited for $6,650
Answer: D
You might also like to view...
We classify conflict in three ways; they are ______.
Fill in the blank(s) with the appropriate word(s).
Which of the following is one of the levels of needs on Maslow’s hierarchy of needs?
A. drive B. mental C. grit D. esteem
A persuasive email message to promote pop-up ad blocker software has as its central selling point the protection of children from pornography. The central selling point should
a. appear early in the message when the product is introduced. b. appear at the end to reinforce the requested action. c. be reinforced throughout the message. d. be implied as the product is described.
A major difference between capital budgeting for domestic operations and foreign operations is that:
A. cash flow estimation is easier (less complex) for foreign operations. B. repatriation of earnings does not occur in foreign operations of multinational firms that are headquartered in the United States. C. estimating cash flows generated from foreign operations is more complex due to fluctuating exchange rates. D. foreign operations are not taxed by both the home country and the host country. E. foreign operations rarely are not as risky as domestic operations.